Remains Buoyant Despite Expected Month-End Flows

Recovery off Friday's low of $1.1612 extended to $1.1680 Monday before reversing into the 1600BST fix, the rate touching a low of $1.1643 before resuming its risk positive led recovery, closing the day around $1.1665. Suggestions last Friday that Monday could see the emergence of US corporate USD demand for month-end value, could be linked to yesterday's corrective pullback into the fix. Month-end models have suggested that we could see further USD demand at tomorrow's month-end fixes though Asian trade was inclined to ignore this potential demand, rather reacting to positive risk outlook. EUR/USD managed to extend its recovery to $1.1684 before momentum faded. Rate eased to $1.1667 before it settled between $1.1670/80 into Europe. Resistance remains between $1.1690/1.1700, a break to expose $1.1720/30 ahead of $1.1750. Support $1.1615 through to a suspected option barrier at $1.1600(weak talk of a $1.16-1.20 dnt structure in play). Whilst rate holds below $1.1690/1.1700 seen keeping the $1.1615/00 area in view, especially with respect to expected USD demand Wednesday. In focus today will be Germany state CPI's ahead of the pan-German release at 1300BST. EZ Economic Sentiment due at 1000BST. US Trade at 1330BST, more focus on US Consumer Confidence at 1500BST. Fed speakers include Williams, Harker, Clarida and Quarles. First presidential debate in view.