Japan to buy Euro bonds

EUR/USD has bounced sharply off its lows. (More to come).

Japanese FinMin Noda has announced that Japan will buy Euro bonds to help boost trust in the EFSF scheme. Japan will buy about 20% of the bonds planned to be issued by the EZ this month (over Reuters newswires).

EUR/USD and EUR/JPY have jumped sharply after the announcement, with the cross up 70 pips in a matter of minutes.