The US calendar is unlikely to be a big driver today. China is once again the focus as banks reduced their five-year loan prime rates by a record 25 bps to 3.95% overnight, the first move of this kind since June. This kind of monetary easing has a generally higher impact on the property market, but once again markets have shown little enthusiasm.

We favour a strong Dollar in the near term as US data remains supportive, but this looks increasingly to be the perfect recipe for range-bound trading.

In DXY terms, 104.00/105.00 may hold as a range in the short run.