EUR/USD last trades flat at $1.1373.....>

EURO-DOLLAR: EUR/USD last trades flat at $1.1373 after dropping 19 pips

yesterday, as the rate managed to erase earlier gains on the back of rising U.S.

Tsy yields. Stronger than exp. U.S. pending home sales (though countered in some

part by soft factory orders and a wider than expected advanced goods trade

deficit) added some weight as well.

- Yesterday saw another clash between Brussels and Rome, as the EU Commission

said that Italy's debt ratio is not going to decline and criticised the Italian

gov't for its expansionary budget, which reverses "previous important reforms."

Italian PM Conte replied, noting that the Commission fails to notice the

positive impact of his gov't's policies.

- ECB's Villeroy pointed towards his own desire for MonPol normalisation.

- Initial resistance noted at the 55-DMA/100-DMA/50-DMA at $1.1387/88/89,

followed by the cloud base at $1.1394. On the downside, initial support is

provided by the 100-HMA at $1.1361 and a breach of that level would open up the

21-DMA, located a further 10 pips below.

- Preliminary CPI figures from across the EZ & French GDP come out later today.