Retains a heavy feel as Europe..........>

EURO-DOLLAR: Retains a heavy feel as Europe departs, the rate having extended

its corrective pullback away from Friday's holiday thinned session high of

$1.1018 to currently languish around $1.0900(low traded $1.0896). Next support

seen between $1.0890/85, a break exposes $1.0873(50% 1.0727-1.1018) ahead of

$1.0838(61.8%). Suggestion that Friday's extended rally, following on from the

month-end recovery, which was driven by general USD sales, was already bruised

in Asia by US-China tensions risk aversion, with a returning Europe catching up

on Friday's negative performance in equities in the US and UK. Release of poor

Mfg PMI in the EZ area also added to the bearish tone. Resistance now seen at

Friday's high of $1.0972 ahead of Friday's high of $1.1018. A light calendar for

the EZ Tuesday. In focus will be US Svcs PMI followed by Fed Evans media

briefing alongside non-mfg ISM. A break below 50 expected for this latter data.

Fed Bostic and Bullard speak after Europe closes.