EUR/USD last trades at $1.1407, 15......>

EURO-DOLLAR: EUR/USD last trades at $1.1407, 15 pips or so higher, after falling

~80 pips in yesterday's dealing. 

- The rate dropped on Wed on the back of poor EZ PMI figures. Meanwhile, Italy

fuelled political uncertainty, as its gov't continues on the collision course

with Brussels over its national budget plans, with Finance Minister Tria noting

that high BTP/Bund yield spread will soon hit the country's weakest banks, while

Salvini continued to point towards no movement re: the draft budget. 

- Broader USD demand was largely evident in the face of risk off flows, which

also weighed. 

- Bears will seek a break below the Wednesday's low at $1.1379 before targeting

the next key support at Aug 15 low at $1.1301. Bulls need to close back above

$1.1448 to reverse the downward momentum and open up a challenge the Oct 23 high

at $1.1493. 

- Points of note this week include the ECB MonPol decision & German IFO figures

due today, as well as Italy sovereign debt rating assessment from S&P due

Friday. Elsewhere, ECB President Draghi will speak on Friday.