Reported pessimistic mood in Beijing....>

EURO-DOLLAR: Reported pessimistic mood in Beijing concerning the ongoing Sino-US

trade negotiations bruised risk appetite through Monday's NY session and saw the

USD trade on the softer side, led by USD/JPY sales with a trimming in UST yields

adding further weight. EUR/USD spiked up to $1.1090 into the 1600GMT fix then

drifted off to $1.1072 into the close. Rate rested on $1.1070 in early Asia,

dipped to $1.1063 in early Tokyo before it recovered through the balance of the

session to $1.1081 into Europe. Risk remains a key driver of USD direction, with

USD/JPY providing the main barometer for this. Resistance remains around

$1.1080, a break to expose $1.1090 with resistance seen from here and stretching

to $1.1105. Support $1.1063, $1.1055/50. This latter area holds the strikes of

E1.41bln of expiring options at today's NY cut, E1.01bln being EUR puts which

may provide rate with some buoyancy. EZ data calendar light again today with

main focus set on Friday's releases of EZ flash PMI's and ECB Lagarde's speech.