Stretched on to $1.1185 Monday as EUR...>

EURO-DOLLAR: Stretched on to $1.1185 Monday as EUR carry play unwinds continued

on expected coordinated policy action to counter effects of the COVID-19 virus

spread. Rate eased to $1.1124 before closing the day at $1.1133. Rate nudged to

$1.1148 in early Asia before it dipped to $1.1120, seen in reaction to the RBA

25bp cut, but quickly met interested buyers into the dip which helped it to edge

back to $1.1156. A RTRS source noted that the G-7 draft communique doesn't call

for increased fiscal stimulus, nor coordinated monetary easing, disappointed

markets, dented the equity markets' recovery and put market into a mild risk off

mode. COVID-19 effects continue to be the main market driver but attention this

morning will be on the release of flash EZ CPI data at 1000GMT, market median

0.2%mm, 1.2%yy, core 1.2%yy. EZ PPI and Employment data released at same time. 

- ECB Guindos(dovish) speaks at 0800GMT, ECB Holzmann(hawkish) at 1000GMT. ECB

Schnabel at 1330GMT, de Cos(dovish) at 1700GMT.

- Support $1.1120, $1.1100, $1.1060/50. Resistance $1.1156, $1.1185, $1.1200.