Another down day for the euro with some month-end volatility thrown in to spice things up. EUR/USD fell as low as 1.2969 during the US morning as Spain, Italy, Belgium, etc were in focus, as was France for a time. Rumors circulated of a French downgrade several times today, only to be denied by both Moody’s and S&P.

Trichet did little to boost confidence in an appearance before the European Parliament. He cast doubts over several elements of the recent reform package and blamed politicians in the euro zone for talking out of school. He moaned that Europe needs a sense of direction while backing away from vows to tighten extra-ordinary liquidity measures.

European sovereign dent stress indicators closed below their worst levels but the late afternoon S&P action on Portugal will likely send them soaring tomorrow morning.

1.2950 barriers are noted as well as 1.2900s. Offers are seen at 1.3040/45 near-term.

USD/JPY was hammered as low as 83.43 in US trade today. Risk aversion stemming from the very unsettled North Korean situation, EUR/JPY selling and lower US yields, especially at the short-end of the curve, helped weigh on the greenback. 83.38 is key support, the 61.8% retracement of the recent 82.75/84.40 rally.

GBP/USD continues to outperform as EUR/GBP slides further by the day. Like the dollar, the pound is losing the daily ugly contest to its sister the euro.

GBP/JPY was in brief demand for month-end rebalancing, helping send that cross a JPY higher around the 16:00 end-of-month fix.

Poor Canadian GDP data helped boost USD/CAD above 1.0250 today while extended its decline modestly, bottoming at 0.9548 this morning before recovering to 0.9625 late in London. It closes at 0.9590.