EUR/USD last trades at $1.1179, 10......>

EURO-DOLLAR: EUR/USD last trades at $1.1179, 10 pips higher, after adding 40

pips Friday. The rate advanced through Friday's European session and peaked at

$1.1180 before diving into the WMR fix. A decline in U.S. Tsy yields sapped USD

strength subsequently, allowing the pair to recover its pre-WMR losses.

- Germany's ruling coalition faces hardship, after SPD leader Nahles quit.

Nahles was a key supporter of the "grand coalition" with CDU/CSU. Elsewhere,

Italy's gov't faced internal tensions over the country's response to the EU

Commission re: controlling Rome's debt. A leaked draft of the letter to the EU

included a reference to a welfare spending cut, which was removed from the final

version after objections from the 5-Star Movement & mediation by PM Conte.

FinMin Tria noted that the leaked letter "damages negotiations with the EC."

- The rate is locked in the falling wedge pattern & a break of $1.1243 would

confirm a bullish reversal. Bears look to the May 23 YtD low of $1.1107.

- EZ focus this week turns to m'fing PMI readings from across the bloc due later

today, ECB MonPol decision & final EZ GDP due Thursday, as well as German

industrial output due Friday. ECB Pres Draghi speaks after the MonPol decision.