EUR/USD rallied 72 pips yesterday as....>

EURO-DOLLAR: EUR/USD rallied 72 pips yesterday as investors were keen to buy the

single currency amid U.S. money market turbulence, which prompted the Fed to

inject liquidity via repo ops. Little reaction was noted to the latest German

ZEW survey as the current situation assessment deteriorated more than exp., but

the expectations gauge was better than forecast, albeit still negative.

- Spaniards will head to the voting booths after an unsuccessful round of

consultations with party leaders hosted by King Felipe VI. The Nov 10 poll will

be the country's fourth general election in four years.

- ECB's Villeroy said that he sees no reason for reviewing the Bank's inflation

target & urged Germany and the Netherlands to draw upon their fiscal leeway.

- EUR/USD last trades flat at $1.1075. A breakout through the channel

resistance, now at $1.1093, would encourage bulls to look for a jump above the

$1.1120 50-DMA. Bears keep an eye on the 21-DMA, which comes in at $1.1050.

- EZ CPI figures are due later today, with the bloc's consumer confidence

reading coming out on Friday. ECB's de Guindos, de Cos and Villeroy all speak

today, with more members due to appear later in the week.