Rate dropped to an eventual early NY....>

EURO-DOLLAR: Rate dropped to an eventual early NY low of $1.1270 following

earlier release of soft EZ flash PMI's, with added weight provided by strong US

Retail Sales. However, rate did manage to recover back above $1.1300 ahead of

the close. Rate marked an early low of $1.1299 as Asian markets got underway

Monday before it edged to an eventual high of $1.1313 in slow trade, seen driven

by slight risk-on feel linked to positives seen from China. Liquidity has been

noticeably tapering off as we approach the Christmas/Year End celebrations,

which added to the overnight subdued session, but many important events this

week could make for volatile sessions. FOMC the main event Wednesday, along with

Fed Chair Powell's press conference. Market focus on data dependency to

determine rate path, following an expected rate hike.

- BBG reported that Italy has identified about E3.0bn of additional funds that

could cover a budget deficit of 2.04% of output.

- Support $1.1300, $1.1269/67, a break here to expose $1.1216(Nov12 YTD low).

Resistance $1.1324, $1.1332/46.

- EZ Trade and Inflation data due at 1000GMT, not normally market movers.