Risk sentiment soured alongside.........>

EURO-DOLLAR: Risk sentiment soured alongside Italian assets from the get-go on

Tuesday, with Italy's 10-Year yield rising sharply to touch the highest levels

observed since early 2014. Rebuttals from Brussels, a still disunited front

among Italian politicians and the extension of uncertainty surrounding the

country's fiscal deficit targets knocked risk appetite. Despite a modest

recovery ahead of the U.S. close, EUR slipped against most, but recovered from

worst levels.

- EUR/USD last deals at ~$1.1545.

- Failure to hold recovery gains above $1.1550 keeps the impetus firmly on the

downside with bears focus turning to a break of the $1.1500 level. Bulls

initially need to reclaim the 100-DMA (1.1644).

- Focus Wednesday turns to EZ services & composite PMIs, as well as EZ retail

sales data and an address from ECB's Mersch.