• Germany’s Merkel to make statement on Greece at 13:00 GMT.
  • German Foreign Minister Westerwelle: Germany has not yet decided on Greece aid. Committing to aid too soon would take pressure off Greece to cut deficit
  • Riksbank’s Osberg: Countries in Southern Europe such as Spain, Italy, Portugal have “major problems”, mounting debt carries risk of “more dramatic” development
  • Harvard Prof Rogoff: Greece probably won’t be last IMF bailout in Europe, with Ireland, Spain and Portugal “conspicuously vulnerable”
  • Spain’s secretary of state for economy: Sees no net job creation in 2010
  • S.Korean fx authorities spotted buying dollars to check won’s gains – traders
  • Russian central bank shifts intervention level to 33.45 roubles/basket from 33.50 after buying around $700 mln – traders
  • Shanghai stock index down 0.4%, lowest close in 2 1/2 months
  • ECB’s Quaden: Rates still appropriate. Recent increase in inflation has been from very very low level
  • ECB’s Nowotny: Euro exchange rate adequate, will not hamper exports – MNI

Yet another bad morning for the euro. Ongoing worries surrounding Europe’s PIGS, especially Greece, ofcourse the driving factor. Comments from Westerwelle, Osberg and Rogoff (see above) won’t have helped matters.

EUR/USD down at 1.3320 from early 1.3370, having been as low as 1.3290 at one stage after stops in 1.3330/40 area were tripped after Westerwelle comments. There has been marginal recovery from lows, some euro bears deciding to book profits on news Merkel to give statement on Greece at 13:00 GMT.

EUR/JPY down at 125.45 from early 125.95. Talk of Japanese sell orders up at 126.30/50.

Cable slightly firmer on day, up at 1.5440 from early 1.5425. Talk of BP and UK clearer needing to buy cable for dividend purposes lent early support. Eastern European central bank was a notable buyer on way to session high 1.5498. Sell orders at 1.5490/00 were well-touted and a large UK corporate seller was notable on the way down.

EUR/GBP down at .8627 from early .8665 having been as low as .8606. Talk of barrier option interest at .8600 will have lent the cross support.

USD/JPY at 94.17, effectively unchanged on the day. Talk of Japanese sell orders at 94.40 through to 94.80 capping recent rally so far.

AUD/USD at .9280 effectively unchanged on day, the pairing managing to take accelerated losses in EUR/USD in it’s stride. A large Japanese bank was seen buying very decent amounts supporting the pairing.