Touched a low of $1.0805 in early.......>

EURO-DOLLAR: Touched a low of $1.0805 in early European trade Monday, extending

its corrective pullback away from Friday's high of $1.0864, as markets took

stock of weekend reports of COVID-19 spread. Rate consolidated around $1.0820

through to the NY open before rate picked up fresh demand as the USD came under

pressure. A mix of virus cover and Saunders risk weighed on US equities, UST

yields, as EUR/USD rallied to $1.0872 before momentum faltered. Rate eased to

$1.0841, closing the day at $1.0854. Rate drifted to $1.0845 early Asia as

markets reacted to Wall Street losses, but a reassessment of the virus

situation, headlines re: various policy measures & research into a coronavirus

vaccine drawing attention, and relatively shallow case counts out of China &

South Korea, steadied markets. A decent bounce in U.S. equity index futures

coincided with a lift in USD/JPY - risk outlook, allowing EUR/USD to edge to

$1.0868. COVID-19 developments remain a key driver. 

- Germany GDP provided no surprises. France confidence data at 0745GMT, Spain

PPI at 0800GMT. 

- Support $1.0840, $1.0810/00. Resistance $1.0868/72, $1.0900.