ForexLive European Wrap: Slow start to week as holidays take their toll

PBOC Zhou: Sharp yuan rise would exert huge blows on China's economy - Xinhua S.Korean President:  G20 failure on fx coordination to put World economy in big trouble  China raises deposit reserve ratio for 6 big banks by 0.5%. Temporary measure in place for 2 months China to launch property tax within months - China's real estate chanber of commerce ECB's Quaden: Have to avoid brutal fx movement Greek/German 10-year govt bond yield spread tightens 27 bps to 740 bps French industrial output flat m/m, weaker than median forecast +0.3% U.S. to step up pressure on China - WSJ OECD August leading indicator for OECD area down at 102.9 from 103.0 in July With U.S. and Canada on holiday, European market found it hard to raise too much interest.  Also it's Monday, nuff said. EUR/USD down at 1.3940 from early 1.3970, as euro bulls continue to struggle to hold ground above 1.4000.  Early slippage was very gradual but accelerated on news China had raised deposit reserve ratio for 6 large banks by 0.5%. We got as low as 1.3917 before steadying.  Trendline support 1.3896, stops below there.  On topside, sell orders seen layered 1.4020 up to 1.4050 barrier interest. Stops above there. USD/JPY effectively unchanged at 81.95 from early 82.00.  Cable also effectively unchanged at 1.5940 from early 1.5930. AUD/USD marginally easier at .9840 from early .9860.  Pairing continues to see some hesitation on approach of hugely pychological parity level. All in all, one best forgotten.