Rate saw a post London fix low of.......>

EURO-DOLLAR: Rate saw a post London fix low of $1.1306 before it closed the

month around $1.1318. Risk was given a lift as markets reacted to the trade

tariff truce agreed between US Trump and China Xi. Rate rallied to $1.1369 in

thin pre-Tokyo trade before it was pressed down to $1.1329. Move seen pressured

as USD/JPY rallied in opening Japan trade, as equities were driven higher, but

as this rate met resistance from above Y113.80 so EUR/USD recovered to $1.1357.

This recovery was given an added boost ahead of the European open as market

reacted to press reports from Italy's Messaggero suggesting that Di Maio &

Salvini ready to accept a new deficit/GDP target, the paper reporting that

Italian PM Conte is preparing for a 1.9-2.0% deficit to GDP ratio. Corrective

pullback in early Europe has met support around $1.1360 with underlying tone

remaining buoyant. Focus this morning on Mfg PMI data from the EZ, with

attention into the afternoon on US ISM Mfg. European FinMins meet in Brussels

which may generate some headlines. Resistance $1.1380/90(expiries here E1.32bn),

strengthening into $1.1400. Support $1.1350/45, $1.1330. US NFP Friday. $1.1300

holds over E6bn of expiries this week.