ECB monthly report: Private sector involvement in debt crisis can be expected to have direct negative effects on banking sector across euro area

Headlines over Reuters.

• Application of PSI to one euro state may put at risk financial stability of whole currency area
• PSI could damage reputation of euro internationally, could add to fx volatility (oh bollox)

EUR/USD down at 1.3755, now among the aforementioned buy orders at 1.3740/60.