EUR/USD last trades a touch higher at...>

EURO-DOLLAR: EUR/USD last trades a touch higher at $1.1289. Initial resistance

noted at the 21-DMA at $1.1299, with bears targeting the 100-DMA at $1.1261.

- The rate edged higher through the European morning yesterday before spiking to

its intraday high of $1.1321 on a BBG source story stating that "ECB policy

makers see no rush for July interest-rate cut." However, the impact proved

short-lived. A leg lower in the European evening was noted as the European

Council nominated IMF's Lagarde to become the next ECB chief; her perceived

dovishness (esp. vs. Germany's Weidmann) might have driven the reaction.

- She wasn't Tuesday's only important nominee - at the end of prolonged talks EU

leaders chose candidates to fill other EU top jobs. German Defence Min von der

Leyen was nominated to head the European Commission, while Belgian PM Michel is

set to become the European Council President.

- Crucially, the new Commission still needs to find the approval of an absolute

majority in the European Parliament, which is all but secured. A negative vote

in the EP would require the Council to present an alternative within a month.

- Due today: services PMIs from the EZ & speeches from ECB's Nowotny & Villeroy.