USD weakness in early European trade....>

EURO-DOLLAR: USD weakness in early European trade on Tuesday was sharply

reversed with some pointing to headlines that China will be pushing for the WTO

to impose sanctions on the U.S. for violating a trade dispute ruling from 2017

(although some suggested that this was already a known and the reaction may have

been somewhat overdone).

- The rate dropped, in line with cable, after the latter reacted positively to

UK wage data before choppy trade ensued on Brexit related headlines. EUR/USD

dropped back to $1.1566, from its high of $1.1644 (having met stiff resistance

between $1.1640/50).

- The rate last deals at ~$1.1590, resistance remains into $1.1650, a break to

expose $1.1680/85. Support noted at $1.1566 ahead of $1.1526.

- The ECB MonPol decision, due Thursday, headlines the EZ docket this week.