EUR/USD last trades at $1.1412. This....>

EURO-DOLLAR: EUR/USD last trades at $1.1412. This comes after the rate hit a low

of $1.1354 on Monday, as Politico reported that the EU Commission is to propose

"disciplining" Italy on Nov 21. The rate then garnered some upside momentum

later in afternoon, with the Politico report denied, and source reports

suggesting Italy's FinMin Tria signalled willingness to work for a compromise

over his country's budget. This was before EZ FinMins called on Italy to revise

its fiscal plans, which was rebuked by Rome. 

- Underlying modest USD weakness caused by uncertainty around Tuesday's Mid-term

elections also lent a degree of support on Monday. 

- Bulls need consolidation after the close above $1.1400, and look to challenge

the 21-DMA/Nov 2 high at $1.1454/56. Meanwhile, bears need a break back below

$1.1400 before targeting yesterday's lows & the 61.8% fibo at $1.1350. 

- Focus this week falls on German factory orders & industrial production due

today and tomorrow respectively. Elsewhere, ECB's Praet, Coeure &

Lautenschlaeger will speak today, while Villeroy, Coeure and Pres Draghi are due

to speak Thursday.