Fed Chair Powell transitory inflation...>

EURO-DOLLAR: Fed Chair Powell transitory inflation remarks has seen the dollar

extend its broad rally across FX. EURUSD touched initial FOMC react highs of

$1.1264, but has since retraced through $1.12, with the downtrend extending to

$1.1167. Despite this volumes have remained light due to the Golden week

holiday's with near-term support from Monday's low at $1.1145, below here opens

a run at the Apr 26 ytd low at $1.1112. Also a worthy reminder of the very large

option expiries rolling off for today's NY cut which could anchor.

$1.1145-44(E1.70bn) & $1.1200(E1.88bn).

- Busy on the calendar today with main focus on EU CPI(0900GMT) & the US jobs

report(1230GMT). For April, flash EU inflation is expected to increase and show

growth rates of 1.6% y/y, and 1.0% y/y for core HICP, according to the MNI

Median. Nonfarm payrolls in the US are forecast to rise by 190,000 in April

after a stronger-than-expected 196,000 increase in March. The unemployment rate

is expected to hold steady at 3.8% for another month. Hourly earnings are

forecast to rise 0.3%, while the average workweek is expected to stay at 34.5

hours. US Svcs PMI(1345GMT) & ISM Non-mfg(1400GMT) also due up.