EUR/USD remained under mild pressure....>

EURO-DOLLAR: EUR/USD remained under mild pressure through Tuesday trade, the

rate extending its corrective pullback, from Monday's high of $1.1215, to

$1.1159, making a show just below $1.1161(61.8% $1.1107 YTD low May23-1.1215).

Market focus on Italy/Italian bonds amid possible EU response to the country's

debt levels, could open disciplinary process Jun5, decision early July, which

could involve a large penalty, as well the awarding of top jobs in the European

parliament following last weekend's election results. Countering this, recent

talk has suggested possible reserve account(s) demand interest which has been

providing the single currency with some buoyancy.

- Support remains between $1.1160/50 ahead of $1.1132(76.4%) and stronger

interest between $1.1110/00. Resistance remains into $1.1200, with interest

suggested to extend toward $1.1220. 

- France GDP(f) and Inflation data due at 0645GMT, Germany Unemployment at

0755GMT with Italian Confidence at 0800GMT(increased interest in data due to

current activity in Italian bonds).

- ECB Mersch speaks at 0730GMT, ECB Rehn at 0800GMT.