Much of a nothingness this morning with EUR/USD sagging from early highs around 1.2795 when i first sat down to lows of 1.2757.

Little in the way of flow information, but the base held up on US named buyers in Tokyo earlier and there was some suggestion that Bk Of Korea could have been on the topside rebalancing his books after some selling in the USD/KRW overnight. The rest of the morning has been catatonic with the EUR drifting around in a 1.2760/90 range, despite some reasonable auctions from Germany, Holland and Belgium.

USD/JPY picked up from 79.20 to 79.45 on steady real money demand but like everything else ran out of momentum and drifted back to 79.25/30. EUR/JPY buy stops were triggered up through 101.50 but the rally faded at 101.58

GBP/USD slipped to 1.5795 from around 1.5835 on some macro selling taking EUR/GBP to highs of 0.8090, before European names sold the cross back down to 0.8067. Cable then picked up to the 1.5820’s again getting a small leg up from Barclays announcement that it was selling its Blackrock stake.

Elsewhere AUD/USD traded a 0.9821-67 hitting highs on some reported fund buying, before slipping back and settling around 0.9850

European equities were mixed with Spanish and Italian indices slipping by around 0.5%, with other Western european bourses up around 0.5-1%