Failure to convincingly clear 1.14......>

EURO-DOLLAR: Failure to convincingly clear 1.14 this week amid the backdrop of a

stronger dollar, has seen the single currency hold either side of $1.1350 at the

European crossover. The 200-dma comes in today at $1.1344, further support is

located at $1.1319 from the trendline off Jan 10. On the topside the bull

channel provides key technical resistance at $1.1408, just ahead of recent highs

($1.1412).

- A busy day on the calendar with German State CPI readings due at the top of

the hour, this is followed by the national release at 1200GMT. Monthly German

inflation is anticipated to slow to 0.1% in June after registering at 0.3% in

May, the lowest reading since January.

- Also, Eurostat's economic sentiment indicator (ESI) is due for release at

0900GMT. Eurozone's economic sentiment gained 1.2 points in May, rising to

105.1. The ESI disappointed in April when it registered at 103.9, the lowest

reading since September 2016.

- There are some large option expiries for today's NY cut, more notable ones at

$1.1330-35(E1.21bln), $1.1350(E712mln), $1.1400(E1.92bln).