Stretched recovery to a high of.........>

EURO-DOLLAR: Stretched recovery to a high of $1.1444 post 1600GMT fix Monday

before momentum faded and rate settled back between $1.1425/30 into the close.

Pressure on AUD, reacting to release of soft AU biz. conditions, acted to press

EUR/USD down to $1.1420 in early Tokyo trade where it met support before it

began a slow recovery through the balance of the session. Rate edged to a high

of $1.1440 ahead of the European open. Resistance seen from Monday's high of

$1.1444 to $1.1450, a break to expose stronger resistance between

$1.1490/1.1500. Support remains at $1.1420, a break to expose Monday's NY low of

$1.1405 ahead of yesterday's low of $1.1390. Option expiries of note today at

$1.1410-15(E1.23bn) and $1.1465-75(E1.06bn).

- ECB Pres Draghi spoke yesterday, noting "persistent uncertainties" & "weaker

than exp. data", blaming "softer external demand & some country and

sector-specific factors." Elsewhere, ECB's Visco & de Cos offered little new.

- EZ highlights this week include German CPI & French GDP due Wednesday, as well

as EZ & Italian GDPs due Thursday. Elsewhere, ECB's Villeroy is due to speak

later today, while ECB's Coeure, Mersch & Weidmann will all speak on Thursday.