Risk appetite through Asia faded into...>

EURO-DOLLAR: Risk appetite through Asia faded into Europe Monday, allowing the

USD to gain ground in the morning. Rate saw a high of $1.0851 (disregarding the

opening Asian high of $1.0856) before it was pressed down to $1.0809. Rate

recovered to $1.0830, then settled around $1.0820 into NY. UST yields provided

the early US drive to take rate back to $1.0844 before they began to creep

higher across the curve and EUR/USD reversed tack. Move partly inspired by

markets reversing recent bets that Fed could move policy rates into negative

territory at some point in 2021. Atlanta Fed's Bostic stated he considers

negative rates a weaker tool for managing the economy. Rate sank to $1.0803,

with recovery efforts held below $1.0820.

- Support $1.0800, $1.0769/67(rising sppt off Mar23/May7 low). Resistance

$1.0850, $1.0876.

- Inflation data in focus Tuesday from China, US and India. Fed Bullard,

Kashkari, Harker, Quarles, and Mester speak Tue. ECB's Stournaras (as well as

former Pres. of the ECJ) speak at an event responding to German Constitutional

Court decision.