• Situation is not yet fully back to normal
  • Liquidity has returned to the market at levels considerably above that in early May
  • It is “not entirely correct” to assume ECB is the only buyer of govt bonds
  • Confident measures ECB has decided will prevent rise in short-term money market interest rates
  • ECB is ready to act at any time on any deterioration of markets or undesireable rise in interest rates
  • ECB support can lead to dependency of banks if support lasts longer than necessary
  • It is not the job of the ECB to offer ratings or publish its internal evaluations
  • It is very frustrating that rating agencies are still acting very procyclically
  • ECB will do everything to be less dependent on rating agencies
  • Programme of buying bonds is going well so far

EUR/USD has given ground during Asian trade, presently down at 1.2260 from North American close Wednesday up around 1.2310 with the latest rally having run into a brick wall up at 1.2350/55. Worries surrounding Spain still very much to the fore.

Sean mentioned earlier buy orders noted at 1.2250/60 with stops just below.

Not much in the way of euro zone data today:

08:00 GMT: ECB monthly report

09:00 GMT: Euro zone April construction output