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

MNI (London)
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.   
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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