Recovery off last Thursday's(May23).....>

EURO-DOLLAR: Recovery off last Thursday's(May23) low of $1.1107(fresh YTD low)

extended to $1.1212 Friday ahead of the long UK/US weekend. This move extended

slightly in holiday thinned trade Monday to $1.1215 before losing momentum then

reversed to $1.1187. Rate finished Monday's session around $1.1190. Early risk

appetite, following Trump-Abe meeting, allowed rate to nudge up to $1.1196 but

reversed sharply as Japanese exporters moved in post Tokyo fix to buy JPY,

prompted risk aversion trade which pressed EUR/USD down to $1.1178. Rate

currently trades back around $1.1185 into European trade. UK and US markets

return Tuesday following their respective Monday bank holidays. Expect further

analysis of the European election results(Tuesday European leaders meet to

discuss leadership nominations).

- Resistance noted from $1.1200, extending toward $1.1220. Support $1.1180/70,

$1.1161(50% $1.1107-1.1215), $1.1148(61.8%), $1.1132(76.4%), $1.1107(May23 low,

YTD low). 

- Confidence data from Germany, France and EZ in view this morning. ECB Villeroy

speaks at 0730GMT. EZ M3 at 0800GMT.