• US CPI rises 0.3%/0.2% ex-food and energy, as expected
  • China lowers reserve requirements for certain rural banks
  • JPM’s Dimon: LTRO wasn’t sufficient to fix Europe’s problems
  • Loss of Dutch AAA rating could push yields up 100 bp: ECB’s Knot
  • Spanish 10-year yields rose 17 bp to 5.99%, credit defaults reach record 498 bp; shares fall 3.5%
  • Univ of Michigan sentiment index falls to 75.7 from 76.2
  • ECB’s Knot: ECB “ver far” from resuming bond buying
  • Tensions rise between ECB managing board and governing council
  • Spain would be dead without ECB funding; Spanish official
  • UK affirmed at AAA by S&P; outlook stable
  • Bernanke makes no mention of economy/policy in NY remarks

A strong session for the dollar as the disappointing Chinese GDP and renewed Spanish sovereign debt fears hung over the market.

EUR/USD fell throughout the morning from opening levels of 1.3175 to 1.30695. We close at 1.3080.

EUR/JPY closes on lows of 105.75 from 106.75 opening.

AUD down at 1.0370 from early 1.0475.

USD/JPY narrowly range-bound: 80.82/81.13.