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Failure in the US to pass the Funding...>

MNI (London)
EURO-DOLLAR: Failure in the US to pass the Funding Bill late Friday saw Usd
marked lower into the Asian open Monday. Rate opened around $1.2271, from
Friday's close of $1.2218, the move up also aided by the SPD agreeing to
coalition talks with Chancellor Merkel. Rate consolidated between $1.2260-75
ahead of Tokyo before the Usd pared losses on hopes that the two US parties were
close to agreement and lift the current Government shutdown. Rate squeezed down
to $1.2216, closing the technical gap, with recovery efforts capped below
$1.2240. Focus to remain on the US shutdown with Thursday's ECB policy statement
providing the week's main event. Recent ECB source reports have tried to damp
down hopes for any major announcement at this meeting. Davos begins Tuesday and
will be watched for any comment from officials on monetary policy.
* Support $1.2215, $1.2200-1.2195, $1.2165. Resistance $1.2275, $1.2295/1.2300.
* Moves above $1.2300 have seen to prompt dovish ECB official or ECB source
* Eurogroup Meeting in Brussels. ECB Draghi and Couere to participate.   
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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