Short squeeze likely over if the rate can trade 1.3000 handle this week. Expect a rotation lower as the rate continues to consolidate in two-way action. Traders note large stops at the 1.2950 area with more over 1.3000 but offers likely to cap on first try.

Russians buying EURO around the 1.2860 area last week traders say; offers from same likely were seen in GBP this morning. Bids on dips from profit-taking shorts some desks report. Rate possibly getting spillover effect from GBP and vice-versa suggesting both pairs may track each other near-term. Support also from cross-spreaders as they unwind Yen.

Shanghai - Roger Federer lived through a second opening-match loss in a shaky start on Monday at the Masters Cup as the top seed went down to Gilles Simon 4-6, 
6-4, 6-3.

The Red group upset was the second in three months for the unheralded Frenchman who only got into the elite field when Rafael Nadal withdrew with a knee injury.

Andy Murray joined his fellow year-end newcomer with a victory, taking down former number one Andy Roddick 6-4, 1-6, 6-1.

The USD opens New York mixed after a quiet two-way overnight session aided by non-USD cross spreading; minor economic news helped to underpin the majors as the week gets underway. Overnight China announced a large economic stimulus plan and "appropriate measures" to be taken in order to continue China's record expansion; traders note that most of the Asian currencies were slightly weaker against the Yen and USD on the news. Equities rallied in Asia as well taking their cue from the news despite ongoing concerns of global recession; Wall Street is expected to open firmer today as well likely due to spillover effects from European bourses which are mostly higher as well.

Berlin - A senior Rwandan official, Rose Kabuye, who has been arrested in Germany on a European warrant, has agreed to be extradited to France, a justice official said Monday in Frankfurt.

Kabuye, 47, is chief of protocol to Rwandan President Paul Kagame and a leading member of his Rwandan Patriotic Front.

After her Sunday detention when she landed in Frankfurt, Rwandan authorities immediately summoned the German ambassador in Kigali to protest.

Madrid - Spanish champions Real Madrid have signed up Alipio Duarte Brandao, a 16 year-old Brazilian winger, his agent was on Monday quoted as saying.

The agent, Helder Daniel, said that Alipio will start to train this week with Real's third division nursery side, called Real Madrid Castilla.

News reports quoted Daniel as saying that the teenage winger "is very happy" with the deal.

Alipio was on the books of Portuguese side Rio Ave, who will receive around 550.000 euros (699.925 dollars) from the deal.