Recovery from Friday's low of $1.1433...>

EURO-DOLLAR: Recovery from Friday's low of $1.1433 extended Monday to a high of

$1.1550 as markets reacted to the recovery in Chinese equity markets, though was

highly suspected to have been engineered. The early risk-on tone faded and rate

eased to a low of $1.1456 post London fix before it settled around $1.1470 into

the close. Early consolidation in Asia before Asian equity markets turned lower,

further eroding Monday's risk-on tone, which took rate to an extended low of

$1.1452 ahead of the European open. Rate retains a heavy feel at writing with

recovery efforts so far lacking ambition. Initial resistance seen into $1.1480

ahead of $1.1500/10. Support seen into $1.1450, Asian traders have suggested

better support on approach to $1.1430. Equity markets remain key, acting as a

barometer for risk. Italy budget continues to bubble away on the front burner.

Calendar sees College of EU Commissioners meeting in Strasbourg to probably

formally provide a negative opinion on the budget. Sources suggest so. EZ

Consumer Confidence data provides the domestic data highlight, expected

lacklustre.