Forex: GBP/USD declines from high to break 1.6200 support (Barcelona) - GBP/USD has declined from its morning high at 1.6271 to break support at 1.6200 and trade at 1.6187.

The pair declined following a morning of generally positive European data but weak UK Index of Services figures which registered a 0.1% against expectations of 1.5%. There is an element of negative risk sentiment this early afternoon across markets following growing skepticism over the Spanish budget saw Spanish yields rise above the 6% level.

With the European economic calendar over for the week, focus will now fall to the US where US Core CPI and Canadian GDP at 12:30 GMT represent two of the afternoons key risk events. The Spanish Bank Stress test results are reported to be released at 18:00 GMT.

European stocks have slipped into the red with commodities looking more buoyant as we move towards the US open. US futures are down indicating a lower open while critical Spanish and Italian 10 year yields are up 1.61% and 1% respectively.