Eur/usd - 1.4250 ... The single currency dropped briefly to around 1.4235 after a report showed that loans to eurozone businesses n households grew at the slowest annual pace on record in July. Annual loan loan growth to private sector slowed to 0.6% in July (forecast was 1.3% increase) fm 1.5% in June. Offers by various accounts are lined up fm 1.4270 to 1.4300 (every 10 pips) with stops seen abv 1.4300. On the downside, bids are located at 1.4220/25 with stops building up below 1.4200.

Usd/jpy - 93.75 ... The greenback rebounded fm 1-month low of 93.37 on short-covering as European stock markets turned positive n bids are located at 93.40/45 with mixture of bids n stops is located at 93.00/10. On the upside, offers are tipped at 93.80/90 n 94.10 with stops only emerging abv 94.50.

GBP/USD - 1.6230 .. The cable moved sideways in a relatively narrow range of 1.6210-1.6245 this morning in tandem with euro although despite active cross-selling in sterling pushed gbp/jpy to a new 6-week low of 151.74. U.K. nationwide house prices n CBI distribution trade report are due out at 06:00GMT n 10:00GMT respectively. Selling interests fm various accounts are now building up in the region of 1.6250-1.6280 with mixture of offers n stops located just abv 1.6300. On the downside, bids (for profit-taking purposes) are noted at 1.6200, 1.6180 n around 1.6150 with demand fm European names only seen further out at 1.6120/30.

EUR/USD - 1.4245 .. The single currency weakened to 1.4219 this morning partly due to risk aversion but profit-taking bids abv y'day's low at 1.4205 limited its downside n the pair traded sideways thereafter. Market conditions are thin at the moment with traders awaiting the opening of European equity markets. Offers (cross-related) are seen in the region of 1.4250-1.4270 n more fm Asian names are tipped at 1.4290/1.4300 with mixture of offers n stops only emerging further out at 1.4340/50. On the downside, bids (some are for profit-taking purposes) are noted at 1.4210/20 n 1.4200 with stops (sizeable) reported at 1.4180 n below 1.4150.

USD/JPY - 93.73 .. The pair remained under pressure n dropped to a one-week low of 93.57 this morning on active cross buying in yen as Asian equity markets fell on concerns over the possibility of Chinese restrictions on industrial overcapacity. Bids at 93.50/60 are now in focus with demand fm importers found around 93.00/10, while fresh offers fm various accounts (including model funds n st specs) are building up in the region of 93.90-94.20 with mixture of offers n stops located around 93.50.

GBP/USD - 1.6229 .. Despite y'day's selloff to a 6-week low at 1.6160, cable has rebounded fm there on short-covering after running into buying interest ahead of 1.6150 n further consolidation is seen in Asia as traders focus on regional equity markets. Selling interest is lined up at 1.6260/70 n 1.6300 with stops likely to emerge abv latter lvl while on the downside, fair-size bids are noted at 1.6180 with a mixture of bids n stops located at 1.6150/60...

EUR/USD - 1.4239 .. Euro tumbled to 1.4205 y'day as traders focused on possible restrictions by the Chinese Government on industrial overcapacity, as opposed to the robust German Ifo n U.S. durable goods data, however, the single currency recovered fm there in N.Y. afternoon on profit taking. Offers remain at 1.4275/80 n 1.4300 as previously mentioned while bids fm Asian names are tipped at 1.4200 with stops placed below there...

USD/JPY - 93.83 .. Japanese names n model funds were seen selling usd/jpy n eur/jpy this morning as risk aversion has increased after Chinese officials said y'day that restrictions on overcapacity are being studied. As a result, regional bourses are trading lower at the moment (Nikkei-225 is currently down over 160 points n the Shanghai Composite index opened 0.67% lower). Bids at 93.90/00 have been absorbed n more buying interest (incl. some orders fm importers) is reported at 93.50/60. On the upside, fresh offers are lined up around 94.50...

Gbp/usd - 1.6230 ... The British pound remained under pressure after the yield on two-year U.K. government bonds fell to a record low, making short-dated British debt less attractive than its eurozone counterpart. Cable extended intra-day decline fm 1.6357 to 6-week low of 1.6160 on active cross selling in sterling (eur/gbp rallied to 0.8808 whilst gbp/jpy fell sharply fm 154.11 to 152.26). Offers are now tipped at 1.6260/70, 1.6300 n further out at 1.6320/25. On the downside, some bids by st spec. are located at 1.6180 n 1.6160 with stops seen below 1.6150.

Usd/jpy - 94.45 ... U.S. new homes sales rose by 9.6% to 0.433 million in July, much higher than the expectation of 0.390 million. The greenback jumped to 94.59 as U.S. stock markets pared early losses n rose by 33 to 9572 after the data. Bids are located at 94.10/20, 93.90/95 with stops building up below 93.70 n 93.40/50. On the upside, some offers are tipped at 94.60/65 n 94.90/95 with stops seen abv 95.10.

Eur/usd - 1.4220 ... The single currency tumbled in U.S. morning on renewed risk aversion (eur/jpy fell sharply fm 135.20 to as low as 133.98) due to less-than-rosy report on U.S. durable goods orders together with the decline in U.S. stock markets (Dow Jones index futures dropped by 33 points to 9507). Crude oil price weakened below $71.00 per barrel also added pressure to the euro. Offers are now noted at 1.4275/80, 1.4300/10 n further out at 1.4340/50. On the downside, sizeable stops below 1.4200 are in focus.

Usd/jpy - 94.15 ... The greenback briefly rebounded to 94.39 after the release of much higher-than-expected U.S. durable goods which came in at a rise of 4.9% versus the economists' forecast of 3.0% increase. The durable good order excluding defense n excluding transportation showed an increase of 4.3% n 0.8% respectively. However, the report indicated a surprise fall in the capital goods number which fell by 0.3% against the expectation of a rise of 1.0%.

Gbp/usd - 1.6245 .... The British pound tumbled to 6-week low of 1.6242 on active cross selling in sterling (eur/gbp rallied to 0.8794 whilst gbp/jpy fell sharply fm 154.11 to 152.92) due to the fall in U.K. two-year gild yields n implied interest rates tarnished the relative appeal of U.K. assets compared to those in the eurozone n the U.S. Offers are now tipped at 1.6280/85, 1.6300 n further out at 1.6320/25. On the downside, stops below 1.6200/10 are in focus.

Eur/usd - 1.4292 ... German Finance Minister Peer Steinbrueck said he was examining measures to improve credit issuance to firms which the government is concerned could tighten in the coming months. Steinbrueck indicated that he was not surprised that troubled lender Hypo Real Estate may need more state aid. The single currency dropped below 1.4300 on speculation that the QE program will continue for the rest of this year. Offers are tipped at 1.4300, 1.4320/25 with stops seen abv 1.4330 n 1.4355/60. On the downside, some bids are located at 1.4255/60 with stops seen below 1.4250.

Usd/jpy - 94.10 ... A report showed that Japanese margin traders on Tokyo Financial Exchange (TFX) increased their net long position in dlr/jpy by 37,027 contracts on Monday n 29,152 on Tuesday, bringing their total net longs in dlr/jpy to a 13-month high of 70,146 on Tuesday. The greenback traded narrowly inside 93.87-94.30 range due to the mixed outlook in global stock markets (European equities dropped by less than 0.4% while Dow Jones index futures rose by 10 points). Offers are tipped at 94.25/30 n 94.55/60 while bids are located at 93.85/90 with stops seen below 93.70 n 93.40/50.

Eur/usd - 1.4330 ... The single currency rebounded to as high as 1.4354 after the release of better-than-expected German Ifo index in August which came in at 90.5 versus the forecast of 88.9 n well abv upwardly revised 87.4 in July. However, profit-taking offers at 1.4350/55 limited euro's upside somewhat with stops building up abv 1.4370, 1.4380 n 1.4400. On the downside, bids by sovereign names are located at 1.4280, 1.4255/60 with stops seen below 1.4250.

GBP/USD - 1.6320 .. .. Cable rebounded after falling to a fresh one-week low of 1.6305 this morning on renewed cross demand in sterling (gbp/jpy is currently trading at 153.75/85 fetr fallng to an intra-day low of 153.15 earlier). At the moment, fresh bids are seen fm 1.6300 down to 1.6270 with mixture of bids n stops noted at 1.6250 n 1.6220/30, while offers are tipped at 1.6350/60, 1.6380/90 (option-related) with stops placed abv 1.6400.

EUR/USD - 1.4300 .. The single currency moved in a relatively narrow range of 1.4280-1.4307 this morning following the selloff fm y'day's NY high of 1.4364. Cross-related demand for euro (after China Government researcher Ba Shusong's positive GDP comments that China GDP may exceed 10% in Q1 n monetary policy is likely to remain loose in near term to support the economic recovery) is noted fm 1.4280 down to 1.4260 with more fm various accounts reported at 1.4220/30 n 1.4200. On the upside, some offers are lined up in the region of 1.4330-1.4350 with stops (sizeable) tipped at 1.4360/70 n further out at 1.4400. German import price index and Ifo index are due out at 06:00GMT n 08:00GMT respectively.

USD/JPY - 94.18 .. Dlr rebounded fm 93.87 this morning as risk appetite increased on the back of rebound in Asian stock markets (Nikkei-225 rose to a 10-month high of 10,650 while HSI and SSE composite closed the morning session up by 82 points n 44 points respectively). The pair is expected to gyrate inside nr term range of 93.79-94.65 amid thin market condition as traders are waiting the release of U.S. durable goods data (12:30GMT) n new home sales at (14:00GMT). Fresh bids (cross-related) are seen in the region of 93.80-94.00 with stops placed below 93.79 n around 93.50 while demand fm importers are reported fm 93.30 down to 93.00. On the upside, offers fm various accounts are noted at 94.30 n 94.50/60 with stops emerging at 94.70/80 n 95.00.

GBP/USD - 1.6320 .. Cable has declined to a fresh one-week low at 1.6305 in Asia this morning but order book is relatively thin at the moment n traders expect some short-covering to occur ahead of European opening with bids noted at 1.6300 n also 1.6250/60 (for profit taking purposes). On the upside, fresh offers are reported at 1.6400/10 n also further out at 1.6440/50. There is no major data due out of the U.K. today...