Recovery off the early Europe low of....>

EURO-DOLLAR: Recovery off the early Europe low of $1.1227 extended to $1.1294

($1.1293 38.2% $1.1422-1.1213, JUn12 hourly low NY) in NY as earlier Asian risk

off fears were eroded by the recovery in US equities. Release of better than

forecast Empire State Mfg data in early NY prompted a slight boost for the USD

but the boost to equities quickly countered this react, with the boost to risk

appetite allowing for the pressure to resume on the USD and thus take EUR/USD to

its intraday high. Rate currently holds around $1.1285 at the European close.

Resistance seen into $1.1300 ahead of $1.1318(50%) then $1.1342(61.8%). Support

$1.1250/40, $1.1227 ahead of $1.1213($1.1212 38.2% $1.1.0871-1.1422).

- Final Germany CPI Tuesday at 0600GMT ahead of Germany ZEW at 0900GMT. US

Retail Sales at 1230GMT, Cap.Ut. and IP at 1315GMT, NAHB home builder index at

1400GMT. Fed Powell testifies before Senate Banking Committee at 1400GMT, though

Fed Clarida more in focus at 2200GMT.