EURUSD extended its series of higher....>

EURO-DOLLAR: EURUSD extended its series of higher highs on Friday to close above

the 200-dma ($1.1349) for the first time since April 2018. As risk appetite

improved somewhat overnight, the single currency squeezed to $1.1386 before

fading. The 61.8% retracement of the Jan-May fall & 2% upper Bollinger band

provide initial resistance at $1.1393/97, ahead of the Jan 30 low at $1.1406.

- There is a very large $1.1390-00 (E1.94bln) option expiry rolling off today

which could anchor ahead of the NY cut.

- Quiet on the calendar today with main highlight from German IFO data at

0800GMT. The Ifo business climate index dropped below the 10-year average to

97.9 in May, the lowest level since November 2014. The index declined to 99.2 in

April after March's rebound to 99.7. The business climate index is expected to

fall further in June to 97.5. The current situation component decreased by 2.8

points to 100.6 in May and is forecast to deteriorate to 100.3 in June.

Expectations remained unchanged at a level of 95.3 in May, which is below the

10-year average of 99.3. In June expectations are anticipated to decline

marginally to 94.7.