Rate continued to step its way higher...>

EURO-DOLLAR: Rate continued to step its way higher through Monday trade,

recovering off last Friday's low of $1.1306, with Asia this morning extending

the move through Monday's high of $1.1380 to $1.1388. Asian traders earlier

mentioned that this level would provide initial resistance, added that stronger

resistance seen placed between $1.1400-05(expiries here E1.17bn). An easing in

UST yields prompted general pressure on the USD, with moves seen led by USD/JPY

and USD/CNY. EUR/USD was edging away from its late NY low of $1.1339 into the

close with Asia able to extend the recovery to that mentioned $1.1388 level into

Europe. Early sales into the European session eased rate to $1.1380 but

underlying tone remains buoyant. Move up was also aided in reaction to Italian

press reports, Italy PM Conte tells Avvenire he will present budget proposal to

avoid EU disciplinary procedure "in next few hours". Headlines state "new

proposal will likely envisage lower deficit than previously planned. EU will

have to take his proposal into serious consideration." This has dampened the

negative effect seen recently from the Italian Budget. Support seen at $1.1340,

$1.1320. $1.1300-05 expiries also of note, E1.73bn.