 Risk appetite is striking a come back as another week starts, lifted by China's measure to lower lending rates. Though, the response in the currency markets is rather muted. For the moment, major pairs and crosses are stuck inside Friday's range. Dollar and Euro and the firmer ones while Aussie and Kiwi are weakest. But the picture can easily change. Technically, weakness in Euro will be a focus today. EUR/USD is still on track to retest 1.1026 low. EUR/JPY is pressing 117.51 support. EUR/CHF is extending recent decline despite weak downside momentum. Sterling's recovery last week was largely seen as corrective and recent fall might be ready to resume any time. GBP/USD and GBP/JPY are both kept below 1.2209 and 130.06 minor resistance levels, and stay bearish. Hence, any rebound in EUR/GBP might only be due to renewed selling in the Pound rather than recovery in Euro. We'll see which way it goes. Released in Asia, New Zealand PPI input rose 0.3% qoq in Q2 versus expectation of -0.6% qoq. PPI output rose 0.5% qoq versus expectation of -0.4% qoq. Japan trade deficit widened to JPY -0.13T in July versus expectation of JPY -0.15T. UK Rightmove house price dropped -1.0% mom in August. In Asian markets, Nikkei is currently up 0.51%. Hong Kong HSI is up 1.82%. China Shanghai SSE is up 0.79%. Singapore Strait Times is up 0.54%. Japan 10-year JGB yield is up 0.0119 at -0.225. | 
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