Woooooooow, that was nearly like a real market this morning. Enough movement to keep everyone happy, just like the good old days.

EUR/USD firmer at 1.3230 from early 1.3180, but inbetween we’ve been down to 1.3157 followed by steamroller rally all the to 1.3243 before slipping back slightly.

European stocks got hit early with banking stocks getting crushed. Spain’s IBEX led the way lower in the wake of yesterdays S&P downgrade.

Poor German Gfk consumer confidence data (see above) helped pressure the single currency and sell stops were tripped through 1.3175 accelerating the single currency’s decline and things were looking pretty grim.

Reports then circulated that BIS had stepped in buying circa 1.3160 (remember they were notable sellers circa 1.3260 yesterday) and the seeds of a rebound were sown.

European stocks started to turn round and as the trickle of stock buying turned into a torrent, so EUR/USD charged northwards. Eventually trailing stops were tripped through 1.3220 giving us the final push to session high.

Comments from S&P’s Kraemer (see above) in late morning trade then caused a slight slip back.

Cable up at 1.6220 from early 1.6170 having been as high as 1.6234 after buy stops tripped through 1.6220. Talk now of barrier option interest lined up at 1.6250.

EUR/GBP unchanged at .8155, defence of touted .8125 barrier option interest having proven successful as we bounced from session low .8130.

USD/JPY down at 80.70 from early 80.86. Talk of buy orders lined up down at 80.40 to 80.20.