EUR/USD last trades at $1.1317, 18......>

EURO-DOLLAR: EUR/USD last trades at $1.1317, 18 pips worse off.

- Over the weekend, unnamed sources told RTRS that "ECB policymakers are open to

cutting the ECB's policy rate again if economic growth weakens in the rest of

the year and a strong euro hurts the bloc." The report suggests that the

exchange rate could "be the main reason for a cut."

- ECB's Weidmann said that ECB normalisation shouldn't be overly postponed,

while Visco noted that the Bank will "certainly act" if required. Elsewhere,

Italian FinMin Tria assured that Italy will comply with the bloc's fiscal rules.

- Bears eye last Thursday's high of $1.1309, followed by the 100-DMA, which

kicks in at $1.1274. Topside attention is drawn to the 50-MMA, Apr 17 high & Apr

12 high at $1.1324, ahead of the 1.0% 10-DMA envelope at $1.1335.

- The rate rose 58 pips Friday, thanks to a particularly disappointing NFP

report out of the U.S., which pulled the rug from under the greenback.

- Italian industrial output hits later today, while its EZ counterpart and

German CPI come out on Thursday. Tuesday will see comments from ECB's Nowotny &

Rehn, with Draghi, de Guindos and Muller due to speak on Wednesday.