Rate continued to pare back Friday's....>

EURO-DOLLAR: Rate continued to pare back Friday's rally, which had seen it push

up from a low $1.1052 to $1.1164. Opening trade Monday retested that high before

it began to ease, moved down to $1.1094 Monday with Tuesday extending move to

$1.1086. Consolidation in Asia this morning saw rate held within a tight range

of $1.1085-95 with opening European trade pressing rate to $1.1084. Next support

seen at $1.1078, the 76.4% retrace level of that mentioned $1.1052-1.1164 rally,

a break to expose Friday's low of $1.1052. Traders aware that E1.57bln EUR puts

roll off between $1.1100-05 at the NY cut, which may act to keep rate anchored

close by. Resistance noted at $1.1116/24, $1.1150/55 ahead of $1.1164.

- EU M3 the main domestic data release at 0800GMT. Italy ISTAT Confidence data

due same time.