Further extended its recovery off the...>

EURO-DOLLAR: Further extended its recovery off the Apr06 low of $1.0769 to

$1.0991 in early Asian trade, before meeting stiff headwind resistance on

approach to $1.1000. Asian traders suggest this interest may be option linked.

Failure to push higher saw rate ease back, found initial support at $1.0980.

Risk aversion then began to creep into markets, as traders adjusted positions

ahead of today's earnings reports from major US banks, Citi, GS and BofA, which

saw EUR/USD break lower, dropping down to $1.0962 into Europe. Support seen into

$1.0955/50, a break to open a deeper pullback toward $1.0915 ahead of

$1.0905/1.0890. Resistance remains between $1.0990-1.1000, ahead of

$1.1012(61.8% $1.1163-1.0769) and $1.1050. 

- Inflation data from France, Spain and Italy provide morning focus ahead of US

Retail Sales and Empire State Mfg at 1230GMT, IP and Cap.Ut. at 1315GMT. 

- ECB Lagarde and Panetta G20 and CenBank Govs video conf meet. Fed Bostic also

speaks.

- MNI TECHS: EURUSD bullish conditions reinforced Tuesday. Scope seen for gains

above $1.1000 towards $1.1039(Apr01 high).