Rate recovered off its low of $1.1891...>

EURO-DOLLAR: Rate recovered off its low of $1.1891 Friday to a NY high of

$1.1968 before it settled around $1.1940 into the week's close. Rate picked up

fresh demand interest in Asia, suggested to be linked to Italy's 5-Star and Lega

Nord reaching an agreement to form a government. News over the weekend noted

Germany's IG Bau construction workers union had agreed a roughly 6.0% wage

increase (W.Germany 5.7%, E. Germany 6.6%) to last for 26-months. This would be

the strongest wage deal sealed in the strongest EU economy and should boost

outlook for wages in the Eurozone. China Three Gorges has reportedly launched a

E9.0bn all cash offer to take over Portuguese utility UDP. Asia managed to edge

rate to a high of $1.1969 before it eased off to $1.1953 into Europe. Fresh

demand in Europe has edged rate to a fresh high of $1.1975 with rate holding

firm at writing. Resistance seen from the May7 high of $1.1978 through to

$1.2000. Large option expiry on May17 with strike of $1.2000 for E2.28bn could

act to keep rate anchored close by.