EURUSD failed to hold above $1.14.......>

EURO-DOLLAR: EURUSD failed to hold above $1.14 yesterday with the subsequent

retracement touching pullback lows of $1.1344 on extended react to Fed Bullard

remarks that he would not support a 50bp cut in July. Recovery efforts squeezed

to $1.1372 into Asia, but the broadly firmer dollar led by UST yields checked

gains. The 200-dma comes in today at $1.1346, further support is located at

$1.1325/17 from the 50-mma & down trendline off Jan 10.

- There are a number of large option expiries today, more notable ones at

$1.1370-80(E3.21bln), $1.1385-90(E1.77bln), $1.1400-10(E805mln).

- German GFK is due up at the top of the hour. In the US today, data from

Durable Goods & Wholesale Inventories. Durable goods orders are expected to fall

by 1.0% in May, with aircraft the key reason for the second month in a row.

Boeing reported no new orders in May, and additionally received multiple

cancellation, so a huge plunge in the transportation category is very likely.

Durable goods orders are expected to rise by 0.2% outside of the transportation

component.