Rate saw a high Monday of $1.1384.......>

EURO-DOLLAR: Rate saw a high Monday of $1.1384 during the European morning

before momentum faded. The corrective pullback gained pace in NY that saw rate

ease off to a low of $1.1325 ahead of the close. Traders noted the early rise

was seen on improved risk outlook, Italy softening its stance on its Budget,

which had been rejected by the EU. Move lower was seen as traders reportedly

reloaded short positions in a fairly lacklustre session. ECB Draghi noted recent

weak data but emphasised inflation set to rise. Rate slowly recovered in Asia,

edged to a high of $1.1344 into Europe before it met strong headwinds that

dropped it back to $1.1323, where move ran into reported demand interest placed

between $1.1325/20. Rate again slowly recovering, currently around $1.1330. Risk

was given a knock overnight on US Trump comments regarding tariffs on Chinese

imports as market begins to turn focus toward G20 meeting. French and Italian

Confidence due this morning, more interest seen in Italy after recent Budget

proposals. Support remains into $1.1320 ahead of $1.1300($1.1295-1.1300 expiries

E1.2bn). Resistance $1.1344/50 ahead of stronger interest at $1.1380/85.