EURUSD has recovered from the early.....>

EURO-DOLLAR: EURUSD has recovered from the early session lows of 1.1755 as the

USD's strength faded, with the pair last dealing at ~1.1795.

- The pair has regained its 21-DMA after a dip below on Friday, with Friday's

intraday low (1.1724) providing initial support and the May 16 high (1.1854)

providing the first notable level of resistance.

- 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. Italy remains the elephant in the room. The exit is

in sight, but what seems clearer from recent comments is that QE is more likely

to end in Dec, not Sep, with even some hawks implying this.