Usd/jpy - 84.15 ... The dollar retreated after strong rise fm 83.75 to an intra-day high of 84.39. Offers are reported at 84.25/30 n 84.35/40 while bids are seen at 84.10/05 n further out at 83.95/90. The difference in yields between U.S. and Japanese 10-year notes widened from the narrowest level since April 2009. IMF special advisor Zhu Min said China's economy is slowing down n it is a very good thing, looking for soft landing. China will release CPI, PPI, industrial output n retail sales data for August at 2:00GMT on Saturday. DJI is currently up by 49 points at 10464.

Eur/usd - 1.2820 ... Although the single currency has rebounded after finding renewed buying at 1.2686/90, offers at 1.2745/50 n 1.2760/65 shud put a lid on the euro's upside ahead of the weekend. The German banking association said the Basel Committee wud probably require banks to have a Tier 1 capital ratio of 6 percent up fm 4 percent n expected Germany's 10 biggest banks cud need 105bln euros of additional capital under the revamp of the banking rules. The Basel Committee of central bank n regulatory officials agreed a proposal for tougher new global bank capital rules on Tuesday but is keeping the details confidential until Sunday. In other news, ex-Fed chief Volcker said that Europe problems put sustainability of the euro in real jeopardy.

Gbp/usd - 1.5380 ... President Barack Obama said he was prepared to sign a bill this month to ensure that U.S. middle class families get tax relief n said it makes no sense to taxes for the wealthiest Americans. The British pound has fallen after meeting renewed selling at 1.5468 on renewed cross selling in sterling especially versus euro (eur/gbp rallied fm 0.8214 to 0.8283). Offers are tipped at 1.5420/25 n 1.5450/60 whilst bids are located at 1.5365/70 with stops below 1.5360 n mixture of bids is located at 1.5340/45.

Eur/usd - 1.2698 ... Despite euro's brief but strg rebound fm 1.2642 to 1.2747 on short-covering, the single currency fell again on concerns over banks ahead of a meeting to finalise European capital rules n a series of Chinese data at the weekend. Offers are tipped at 1.2720 whilst bids are located at 1.2670/75 with stops seen below 1.2670 but demand fm Asian names is reported at 1.2640/45 n 1.2620/25.

Usd/jpy - 83.94 ... Japanese Prime Minister Naoto Kan said in a debate with powerbroker Ichiro Ozawa that the government wud take firm steps as needed to stop the yen's rise but added that joint intervention in currency markets was difficult. The greenback retreated to 83.75 despite early rally to 84.30. Offers are tipped at 84.10/15 whilst bids are located at 83.70/75.

Gbp/usd - 1.5450 ... U.K. core PPI rose by 0.1% m/m n 4.6% y/y as expected respectively. Despite cable's intra-day strg rebound fm 1.5365 to 1.5467, the British pound retreated on profit taking n offers are tipped at 1.5470/75 with stops seen abv 1.5480. On the downside, some bids are located at 1.5420 n 1.5400.

Gbp/usd - 1.5390 ... The British pound tumbled on dollar's strength elsewhere. U.K. will release its PPI data at 08:30GMT. Offers by European names are tipped at 1.5400, 1.5420 n further out at 1.5440/45 whilst stops below 1.5370 are in focus, however, demand fm real money accounts is located at 1.5340/45 n 1.5320.

Eur/usd - 1.2688 ... The single currency tumbled to a low of 1.2642 on renewed risk aversions due to a rise in U.S. Treasury yields. Investors bought U.S. dollar actively as safe-haven currency in Asia. There is no major economic data to be released, therefore, data is not going to play a big part today. Offers by various accounts are tipped at 1.2690/00, 1.2710 n further out at 1.2730/40. Investors are focusing on the stops below 1.2625.

Usd/jpy - 83.94 ... The greenback rebounded to 84.30 on short-covering in reaction to a Japanese government statement indicated that 'decisive measures' will be taken, including FX intervention if necessary together with a widening in the U.S.-Japan yield spread, however, renewed selling interest by various accounts there limited dlr's upside somewhat n price retreated to 83.80. In other news, an aide to Japan PM candidate Ichiro Ozawa said the Bank of Japan shud expand its outright buying of long-term Japanese government bonds to help beat deflation. Ozawa is challenging Prime Minister Naoto Kan in a party leadership vote on Sept. 14 that underscores a rift over fiscal priorities. Offers are now tipped at 84.20/25 whilst bids are located at 83.70/80.

GBP/USD - 1.5400.. Cable has been tracking intra -day large swings in eur/usd pretty closely in last few days n price fell in tandem with euro in Asian morning to 1.5393, a mixture of bids n stops is reported at 1.5370/75 but order book is rather thin on Friday as this week's choppy movements have deterred position players. Some offers are seen at 1.5420-30. UK PPI data for Aug are due out at 08:30GMT but these are less important than CPI which is used by BOE to monitor inflation pressure, therefore, don't expect much reaction unless core PPI is sharply higher (i.e. 0.4% or more).

EUR/USD - 1.2653.. Just like y'day's hectic trading in Asian morning, the single ccy was under heavy selling pressure today as st specs (plus other names) sold euro in reaction to o/n bearish news of a 'massive' (9 bln euro) rights issue by Deutsche Bank, stops were triggered on the way down n the fact price is trading below Wed's low of 1.2659 (low so far is 1.2642) n this suggests euro remains top heavy n traders are making every attempt to push price twd Aug's low at 1.2588. Offers have been lowered to 1.2660-70 n no large bids have been reported so far but suspect Asian sovereign accounts may have interest to buy abv 1.2588.

USD/JPY - 87.08.. Breaking news fm Reuters quoting Japanese official comments that 'hopes BOJ will take further steps to beat deflation; to take decisive measures including forex intervention if needed.' PM Kan was reported earlier to unveil a 915 bln yen ($11 bln) economic package (50% of it will be used to stimulate consumer spending) to prop up the economy. Dlr initially edged higher on news of failure of Incubator Bank of Japan (a small unlisted bank) n later moved higher after triggering stops abv 84.05, the pair climbed to an intra-day high of 84.14 so far. Bids have been raised to 83.90-80 n some offers by Japanese exporters are seen at 84.30-40. Dlr is expected to trade with a firm undertone in Tokyo morning as market is obviously very short on the buck after the pair fell to a 15-year low of 83.34 on Wed.

Eur/usd - 1.2695 ... Despite the euro's rise to a session high of 1.2767 earlier, the single currency retreated as the DJI pared most of the intra-day gains (about 80 points) n is only up by 10 points. Bids are seen at 1.2680/75 n 1.2670/65 with stops building up below y'day's low of 1.2659. European Central Bank President Jean-Claude Trichet said in a newspaper interview seen by Reuters that there is no risk of deflation or inflation in the eurozone at the moment.

Gbp/usd - 1.5444 ... Although the British pound rebounded strongly fm 1.5379 earlier, cable retreated in NY afternoon after running into offers at 1.5479/80, however, cross-buying in sterling versus euro shud cushion the downside. Eur/gbp fell sharp 0.8269 to 0.8219. Reuters news quoted fm BBC saying that British finance minster George Osborne plans an additional 4 billion pounds of welfare cuts on top of an 11 billion pounds reduction to the annual bill already planned.

Eur/usd - 1.2722 ... The single currency rebounded to 1.2767 on renewed risk appetites after the release of better-than-expected U.S. jobless claims data, however, renewed selling interest by European n U.S. names limited euro's upside somewhat. Offers are now tipped at 1.2740/45 n 1.2760/65 whilst bids are located at 1.2710/15 with stops seen below 1.2690 but demand fm sovereign names is reported at 1.2655/60.

Usd/jpy - 83.73 ... The greenback jumped to 83.88 against the Japanese yen after the release of U.S. weekly jobless claims data which came in at 451,000, better than economists' forecast of 470,000. However, dlr's upside wud be ltd as offers by Japanese exporters are tipped at 83.95/00. On the downside, bids are located at 83.50/55 n 83.35/40 with mixture of bids n stops are reported at 83.00.

Gbp/usd - 1.5400 ... The British pound was little changed after the Bank of England kept interest rates unchanged at a record low of 0.5% n announced no new quantitative easing measures as widely expected. Offers are tipped at 1.5420/25 whilst bids are located at 1.5380 with stops seen below 1.5370 n 1.5350. Trading is relatively thin as investors are waiting for the release of U.S. weekly jobless claims data at 12:30GMT.

Eur/usd - 1.2720 ... Despite euro's brief drop to 1.2665 in European morning, the single currency found renewed buying interest abv y'day's low of 1.2659 as European equities pared losses n turned into +ve territories. Bids by sovereign names are located at 1.2700/05 n 1.2665/70 with mixture of bids n stops remain at 1.2650. On the upside, offers are tipped at 1.2735/40 n 1.2760/65.

Gbp/usd - 1.5388 ... Britain's FSA said it fined Goldman Sachs Group Inc 17.5 mln pounds. The Goldman Sachs fine related to failure to ensure adequate systems controls n failure to notify FSA of SEC investigation into the Abacus CDO as Goldman Sachs did not tell it that a Wells notice had been issued to Fabrice Tourre. The British pound fell below 1.5400 level after the release of weaker-than-expected U.K. trade data which showed a trade deficit of 8.67 bln pounds in July versus the expectation of 7.45 bln pounds deficit.

Eur/usd - 1.2678 ... The single currency fell in European morning in reaction to early comments fm ECB's Stark who said German banks were undercapitalised. The comments were reported during the late U.S. session. Offers are tipped at 1.2690/00 n further out at 1.2710/20. On the downside, some bids are located at 1.2655/60 with mixture of stops n bids is reported at 1.2650.