The Eurozone is well and truly focused on......>

EURO: The Eurozone is well and truly focused on the upcoming weekend's political

events.

- Sunday will see the Italian general election take place, and we will also see

the results of the German SPD Party ballot re: moving to form a grand coalition

with the ruling CDU/CSU bloc.

- While the mood surrounding the political backdrop has been relatively relaxed

in recent weeks(the Sentix Euro breakup index sits at record lows), the tail

risks have been heavily analysed and would likely be -ve for the Euro e.g.

Italy's centre-right bloc assuming power on its own with notable influence from

the (Northern) League or the SPD saying no to the CDU/CSU GroKo tie-up.

- In the more immediate term notable FX option expiries for the EURUSD are

likely to garner attention, with EUR 920mln worth of 1.2150 expries, EUR 1.89bln

worth of 1.2200 expiries & EUR 1.02bln worth of 1.2300 expires all set to roll

off at the 10AM NY cut on Thursday. While the Friday cut sees EUR 1.45bln worth

of 1.2120 expiries, EUR 2.92bln worth of 1.2150 expiries & EUR 2.79bln worth of

1.2250 roll off.