Rate dropped from its early NY high.....>

EURO-DOLLAR: Rate dropped from its early NY high of $1.1624 to extend the

intraday low to $1.1564 Monday but managed to settle between $1.1575/80 into the

close. Early consolidation in Asia (markets remained fairly subdued with China

out still) and only came under mild EUR/JPY led sell pressure after the Tokyo

fix which pressed it to $1.1569. Rate settled back toward $1.1575 into Europe

only to come under stronger sell pressure (seen USD led) with rate pressed to a

low of $1.1552. Rate currently holding heavy but seen meeting reported support

into the $1.1550 level. A break here to expose next support area between

$1.1530/25, a break here expected to accelerate sell interest. Concern remains

over the Italy, the government to issue its Q2 deficit to GDP data Wednesday.

Little domestic data interest with attention on Italy headlines from EZ

officials. Resistance $1.1580.