EUR/USD touched an extended low of......>

EURO-DOLLAR: EUR/USD touched an extended low of $1.1357 in early afternoon trade

Monday(US closed for MLK day) but held off challenging the recent low of

$1.1353(Jan18) and suggested stronger support into $1.1350. Rate recovered to

$1.1371 before closing a the day at $1.1366. Slow recovery continued into Asia

but was only able to lift rate to $1.1373 before momentum, as it was, faded. As

HK opened rate dropped to an initial low of $1.1356, reports of a decent bid

sitting at $1.1355 saw rate edge back up to $1.1361 before stronger sales, said

to be linked to EUR/JPY, took rate through $1.1356/55 to $1.1350 where it met

stronger support, though recovery efforts remain shallow. Recent reports have

suggested a break below $1.1350 could expose next band of support between

$1.1340/30. Some suggestion interest linked to a reduction in recent EUR/USD

shorts.

- EZ data focus on Germany ZEW due Tuesday 1000GMT.

- ECB is set to deliver its MonPol decision Thursday, with no change to the

policy rate expected. Instead, the Bank's rhetoric re: the slowing EZ economy

will draw attention. EZ flash PMIs due Thursday & German Ifo due Friday.