Recovery off the Sep03 low of $1.0926...>

EURO-DOLLAR: Recovery off the Sep03 low of $1.0926 extended to a Sep05 high of

$1.1085 before it settled back around $1.1030 as market awaited release of key

US jobs data Friday. Headline NFP miss, 130k vs forecast 160k, was balanced by

the rise in AHE to 0.4% from forecast 0.3%. Rate did react by bouncing off its

pre release low of $1.1020 to $1.1057 but settled back between $1.1025-30 into

the close. Asia extended the pullback to $1.1016 before it again settled back

within $1.1025/30 in a generally subdued trading session.

- Germany Trade data at 0600GMT but more attention on this week's (Thu) ECB

policy announcement. Easing action much expected, deposit rate cut, renewed QE

and changes to forward guidance suggested as likely scenarios. 

- Support into $1.1000 (level holds strikes for expiries at today's NY cut,

total E1.8bln, of which E1.31bln are EUR puts). Break below exposes

$1.0987(61.8% 1.0926-1.1085) ahead of $1.0969/64(Sep04 low/76.4% 1.0926-1.1085).

- Resistance $1.1050-60, $1.1085.