Following last Thursday's volatile......>

EURO-DOLLAR: Following last Thursday's volatile reaction to the much anticipated

ECB signalling for easing at its next meeting in September, the rate bouncing

back from an initial dip to $1.1102 to $1.1188, has since pared those recovery

gains, eased to a low of $1.1112 Friday before settling between $1.1120/39

through Asia. A light data calendar Monday. Focus on Wednesday's FOMC rate

decision, most look for a 25bp cut, though a move of 50bp hasn't been completely

ruled out. Ahead of this event, Tuesday we have German States' CPI readings

ahead of the pan German release and France GDP. Wednesday brings France CPI,

Germany employment ahead of EZ GDP and flash CPI. 

- Support $1.1120 ahead of Friday's low of $1.1112 with stronger support into

$1.1100 ($1.1102 Jul25 low). Resistance $1.1150 ahead of $1.1188. Interesting to

note that EUR/USD, like EUR/GBP, is also tracking within its 1.0% 10-dma

envelope. Base comes in at $1.1072, 10-dma at $1.1184.