European morning wrap: It was just like the old days……

By: Gerry Davies

EU says Spain made clear intention top implement program EU says Troika in Greece to take a pause Italy's finance undersecretary Polillo: Italy, Spain won't request aid unless yields jump (has he been at the peroni)  Portugal PM: Path to recovery will be hard SNB: Swiss franc remains 'high,' is weighing on economy PBOC adviser Song: China slowdown may persist into 2013.  Adviser sees China Q4 GDP growth at 7.3-7.4% ECB's Liikanen: Banking union a loooong-term project Spain risks break-up as Mariano Rajoy stirs Catalan fury - AEP at The Telegraph Spain near bailout -But what's different this time - CNBC Quantitative easing isn't magic - Galbraith in The Guardian Although the major spots and crosses aren't showing large net changes at the end of the session, it's been lively. Indeed for a while back there it got REAL lively. EUR/USD up marginally at 1.3015 from early 1.2995.  Inbetween though we've been as low as 1.2953 and as high as 1.3048. Pairing came under early pressure. US invesment bank (not the infamous one) notable seller during this swoon.  The Swiss National Bank at the same time was seen offloading the EUR/AUD cross in decent size (diversification of euros its picked up in supporting the EUR/CHF peg) Talk had buy orders clustered down at 1.2950/60 and we got as low as 1.2956.  PAUSE then WHOOSH we were off to the races with middle eastern sovereign buying very noticeable.  Buy stops through 1.3010 were tipped in the blink of and eye and we made it to 1.3048 befre falling back. Volatile stuff. Funnily enough other markets (stocks, commodities, bonds) for the most part have been relatively quiet. USD/JPY effectively unchanged at 78.15.  Talk of 78.00-79.25 DNT in play, expiry sometime next week apparently. Must be for fairly good size or people wouldn't be talking about it. Buy orders seen clustered 77.95/05, sell stops through 77.90. AUD/USD up 1.0505 from early 1.0475.  The SNB selling the EUR/AUD cross provided the spot pairing with solid underpinning.