ForexLive US wrap; Early euro weakness gives way to afternoon calm

ECB rumored to have bought Portuguese and Irish debt today Spanish region of Valencia pays loan late but did not get guarantee SNB's Hildebrand to hold press conference tomorrow to address currency trades; Auditor says was compliant with rules  EU reaches agreement to place embargo on Iranian oil Unicredit raises capital, but at very steep price US factory orders rise 1.8% in November; ex-transportation up 0.3% Swiss government: We have confidence in Hildebrand Greek PM: Face default in March without new Troika deal FT: Spain sees EUR 50 bln in new bank provisions (after earlier tlak of EUR 100 bln loan need from EU-IMF) Fed study: Must continue to prop up housing market S&P 500 unchanged at 1277; Milan falls 1.7% US 10-yr note yield rise 3 bp to 1.98%; Italy up 1 bp to 6.96% WTI rises $0.50 to $103.50; gold rises $8.50 to $1612 EUR/USD opened under pressure in the US and triggered stops below 1.2975 right out of the gate. Rumors that Spain may need to raise billiuons for a further bank bailout helped prompt the selling as did a lousy reception for a rights issue (capital-raising effort) by Italy's UniCredit. Heavy selling of EUR/GBP was seen this morning, helping push that pair below a 0.8300 barrier and as low as 0.8265.  EUR/USD slipped all the way back below 1.2900 briefly before stabilizing in a 1.2935/55 range. A rally in Brent crude after the EU agreed to an eventual embargo on Iranian oil helped slow the euros decline. Rallies are capped now in the 1.2965/75 area while bids are seen on dips to the 1.2850/60 area. EUR/CHF was narrowly range-bound between 1.2175/98 but the SNB was very much in the spotlight as the Chairman's personal FX dealings (and those of his ex-hedge fund employee wife) remain a concern. An auditors report tried to sweep the matter under the rug. Mr. Market won't be satisfied until hearing Hildebrand's explanation first hand. AUD and CAD remain firm on the crosses, supported by oil prices and receding fears of a Chinese slowdown.