• Greek PM Papandreou has not resigned and will not resign- Reuters
  • Greek PM Papandreou chairs emergency Cabinet meeting at 1000GMT
  • Greek ruling party lawmaker says PM Papandreou must withdraw referendum plan
  • Eurogroup’s Juncker: Cannot say that Greece must stay in euro zone at any price – German TV
  • Greek FinMin: Greece’s participation in the euro cannot depend on a referendum
  • Spanish Oct Unemployment up 3.2% m/m (up 134,182 to 4.36 mln)
  • French Europe Minister Leonetti: Euro can survive without Greece
  • OECD’s Gurria: Hopes Draghi will cut ECB rates
  • BOE Gov King: Should go ahead and implement Vickers report
  • US Pres Obama:US will continue to be partner to Europe
  • UK Oct Services PMI 51.3 (expected 52.0), down from 52.9 in Sep
  • Japan’s PM Noda: Must prevent euro problems spreading to other financial systems

A nervous morning ahead of the ECB rate announcement at 1245GMT.

Bickering between Greek officials and an emergency meeting called by Greek PM Papandreou, has had the market on tenderhooks on whether the confidence vote will go ahead and whether the govt will indeed survive the next day or so.

An announcement late in the morning from Reuters quoted Greece’s Chief of Staff that Papandreou has not resigned and will not resign.

Sovereign buying just ahead of 1.3650 stops stemmed the EUR/USD outflow in the wake of the Asian session, and ECB bond buying together with US investment and Middle Eastern demand led the strong rally to 1.3807, before some profit taking and offers from the BIS pushed back to 1.3770. Another push higher recently stuttered at 1.3819 . Buy stops are now sitting up at 1.3830/35

GBP/USD caught a lift on the back of the euro from 1.5880 to 1.6018 despite poor Oct services PMI data. EUR/GBP has faded a rally to 0.8642 after lows of 0.8597 earlier in the session.

USD/JPY is balancing on a cliff again with bids around 78.00 keeping stops at 77.80 out of reach for now. Exporters offers are lowered to 78.20 and 78.50 effectively throttling the dollar .

AUD/USD thumbed a lift with EUR/USD, heading well clear of the 55 and 50 day MA’s down at 1.0255 and 1.0236 , with some sovereign buying and a large NZD/USD buy order helping to highs of 1.0359.

EUR/CHF was benign in a 1.2130-54 range , with the USD/CHF falling back from 0.8888 to 0. 8799

Nymex crude recovered with equities, from an early fall to 90.88 to 92.99. Gold was relatively steady in a 1722-1739 range

Equities are back in the positives with STOXX up around 1.3%, FTSE up 0.5%, CAC up 1.4% and DAX 1.6%