EURUSD experienced a sharp 30 pip.......>

EURO-DOLLAR: EURUSD experienced a sharp 30 pip sell off against the backdrop of

USD strength around the Tokyo re-open, but has regained its poise to trade back

to 1.1770, off of lows of 1.1743. Sources highlighted selling from a US bank in

the 1.1750s when the cross was under pressure.

- Support is noted at the June 08 low (1.1727) while resistance comes in at the

May 16 high (1.1854). Nearby FX option expiries of note at today's 10AM NY cut:

1.1785-90 (E1.02bln).

- Focus fall's on Thursday's ECB decision. Interest has peaked after some source

reports and comments from ECB governing council members suggested that this

week's decision could be "live" i.e. the meeting could indicate when the ECB

plans to bring its QE programme to an end. Last week we noted that the June 14

ECB GC meeting is hardly certain to deliver a decisive announcement on ending

QE, despite news reports and ECB hawks` comments. On Jun 01 MNI`s Policy team

cited Eurosystem sources saying a June decision/statement on QE end-date was not

expected. While our ears remain to the ground, we have heard nothing since then

to think that has changed.