Recovered Friday off its early NY low...>

EURO-DOLLAR: Recovered Friday off its early NY low of $1.1336 to a late high of

$1.1421, then eased back toward $1.1400 into the week's close. This corrective

pullback extended to $1.1387 in early Asian trade before it recovered to $1.1404

at the Tokyo open. However, fresh sales emerged to press rate down to a fresh

low of $1.1386 before it slowly climbed back toward $1.1400 into Europe. Little

reaction to S&P on Italy, affirmed BBB rating but moved outlook to negative, as

well as the bruising Merkel's coalition received at the weekend's election in

Hesse. Risk seen in balance as Asian equities did attempt to rally at their

open, only to quickly lose momentum and pare early gains. Light domestic

calendar in the EZ. Focus on US PCE. Focus for the week, US Employment Report

Friday. Standout option expiries noted at $1.1350(E1.49bn) and $1.1500(E1.61bn).

Support $1.1386 ahead of $1.1360/50. Resistance $1.1420.