Return of European markets Monday saw...>

EURO-DOLLAR: Return of European markets Monday saw EUR/USD extend its corrective

pullback off Friday's May01 high of $1.1018 before finding support between

$1.0900/1.0895(low $1.0896). Japan, S.Korea and China were closed Tuesday and

made for quiet markets through Asia. Monday's risk aversion was tempered in Asia

as markets took heart from a relaxation in COVID-19 lock downs. US Fauci said

there are regions, counties where rules can relax; HK Lam announcing an increase

in social gathering from 4 to 8, with plans for schools to reopen; NZ Arden

saying Australia and NZ considering a safe zone of travel. EUR/USD retested

Monday's low in early Asia before it edged to $1.0916 failing to garner any

major recovery momentum. A break of $1.0896 to expose technical support between

$1.0888/86. A break of $1.0870 to then open a deeper move toward $1.0838/33.

Resistance into $1.0920/25 ahead of $1.0950. 

- EZ PPI(0900GMT). US Trade (1230GMT) ahead of US Svcs PMI(1345GMT), which

provides curtain raiser to focal non-Mfg ISM at 1400GMT. German Constitutional

Court announces ruling on ECB bond purchases at 0800GMT. ECB Mersch in panel

discussion at 0840GMT. Fed Evans, Bostic and Bullard on the docket.