Volatile reaction to release of US......>

EURO-DOLLAR: Volatile reaction to release of US Employment Report Friday saw

rate bounce from an initial low of $1.1484 to $1.1549. Rate dropped back to

$1.1498 through Friday's London fix before it settled around $1.1520 into the

close. Early demand in Asia saw rate edge to $1.1535 but firm UST yields eased

rate back to $1.1520 where it consolidated in early Asian dealing. Japan

holiday, along with US and Canadian market holidays later, acted to subdue

trade, made for thin conditions with the UST yield pressure eventually pressing

EUR/USD down to $1.1507 into Europe. Initial support seen into $1.1500($1.1498

hourly low Friday off $1.1549), a break to expose Friday's low of $1.1484 ahead

of $1.1464(Oct4 low) with a standout option expiry, with a strike at

$1.1450(E1.5bn), sitting close behind and expected to draw protective support

ahead. Resistance $1.1535 ahead of $1.1550. A light data calendar in Europe

Monday with markets remaining on Italy budget headline watch. UST yields to

remain the key driver.