Initial react to Friday's release of....>

EURO-DOLLAR: Initial react to Friday's release of US Employment Report saw

EUR/USD pop up to $1.0852 only to drop to $1.0815 as those positioned for the

weak data covered back, possibly influenced by the earnings data. However, the

prospect of negative rates in the US acted to bounce the rate sharply to

$1.0876, the move aided by the fact that London was closed making for thinner

conditions. Rate drifted back to $1.0833, closing the week around $1.0840.

Volatile start in Asia as rate jumped to $1.0856, then dropped to $1.0821 before

rate settled back above $1.0840 through to the European open as risk appetite

drove markets. Demand for EUR/JPY was seen as a key component of the lift.

- Support $1.0820/15, $1.0800 $1.0769/67. Resistance $1.0850/60, $1.0876,

$1.0890/1.0900.

- MNI TECHS: Near-term outlook remains bearish following last week's sharp

sell-off. However, to offset this the pair needs to clear Friday's high of

$1.0876 to expose $1.0926(May 5 high). A breach of this latter level would

refocus attention on key resistance at $1.1018(May 1 high). Below $1.0767

resumes bearish pressure and opens $1.0727.