Quiet start in Asia for Eur/Usd, rate...>

EURO-DOLLAR: Quiet start in Asia for Eur/Usd, rate edged to a high of $1.1812

before it was knocked lower on reports the German coalition talks had broken

down (pro business FDP walk out) leaving Merkel's future in doubt. Rate fell to

$1.1722 before it met decent demand placed toward $1.1720 which cushioned.

Recovery efforts were capped at $1.1750. Rate eased off to $1.1725 then

recovered through the balance of the session, found fresh demand interest in

early Europe that has lifted it to $1.1743.

* Merkel options are to either form a minority government with the Greens (old

coalition partners SPD have already ruled out a new coalition), or call for a

fresh election. Market will await developments, Merkwel to brief reporters in

Berlin 1130GMT.

* ECB Draghi speaks at ECON hearing(1400GMT). ECB Nowotny(1115GMT) and

Lautenschlager(1215GMT).

* Option expiries - $1.1660-70(E999mn), $1.1750(E342mn), $1.1800-05(E624mn).

* Support $1.1720, $1.1705/00. Resistance $1.1750.