Friday's late recovery, which allowed...>

EURO-DOLLAR: Friday's late recovery, which allowed rate to make a show back

above $1.1300, was seen taking the sting out of a building bearish tone, though

rate did finish the week at $1.1297. Rate had corrected off its traded lows of

$1.1234, seen on dovish comments from ECB Coeure, with the USD taking a general

knock from release of weaker than forecast US IP data. Early attempts in Asia to

edge back above $1.1300 met some headwinds before rate touched a low of $1.1289.

ECB Villeroy spoke over the weekend and echoed Coeure by noting that the EZ econ

slowdown is "significant", which may force the ECB to change its policy guidance

if it proves to be more than temporary. ECB's Rehn noted that the Bank "has all

of its instruments available" if the slowdown becomes exacerbated. Risk-on tone

in Asia allowed rate to pick up demand, traded up to $1.1325 before momentum

faded. Rate has since drifted back to $1.1307($1.1306 late NY recovery

high/Feb15 high) where it has found some support into Europe.

- EZ focus this week, Germany ZEW survey Tuesday, Flash EZ PMI data & ECB Jan

meeting minutes Thursday, as well as EZ CPI & German IFO due Friday. Plenty of

ECB rhetoric scheduled for this week.