New York afternoons have turned into a vast trading wasteland of late but we had an active morning. Greek debt concerns burst back into the markets consciousness as the bond sold yesterday perform horribly in the in the secondary market and Greece failed to sell all of the 12-year bonds it offered this morning, placing less than 40% of them. Spreads over German debt widened nearly 25 bp today and are near the highs of the month just days after the Greek problem was thought to be solved.

EUR/USD fell as low as 1.3395 in New York with the selling intensifying upon breaking below the 1.3450 level where central banks had been buyers during the London morning. More sovereign buying was seen in the 1.34-teens but the market managed to edge through 1.3400 before recovering modestly. 1.3435 is now resistance on rebounds n the near-term.

Helping fuel the EUR/USD slide in late-London trade was a large EUR/GBP sell order handled by a pair of UK clearing banks. Stops were triggered below 0.8900 and again below 0.8888 support, driving the cross down to 0.8880 before bouncing to close just above 0.8900. Cable selling was seen in the afternoon from one of the two clearers who sold the cross which helped send cable back to 1.5055 from 1.5125 highs seen at the height of the cross selling.

USD/JPY was in demand at the 15:00 GMT fixing, taking that pair close to 93.00 before it stalled. Dips were very shallow, only to the high 92.70s in the NY afternoon. More month-end demand for USD/JPY is rumored for month and quarter-end.

AUD/USD was a grind higher in US morning trade, reaching 0.9215 before stalling. .9230 is important resistance on the daily charts with a downtrend line drawn off the 0.9405, 0.9330 and 0.9252 highs coming in there.