ForexLive North American wrap: Spain takes over troubled bank

Spain takes steps to nationalize Bankia Spanish CDS hit record high Spain to miss deficit targets SYRIZA unable to form Greek coalition EFSF holds back 1B euros in Greek aid payment Rajoy confirms more Spanish bank decision to be taken Friday IMF "reluctant" to lend to Italy or Spain US wholesale inventories and sales below estimates, GDP estimates trimmed Kocherlakota: Fed should begin considering tightening in 6-9 months Pianalto: expects 2.5% growth this year Merkel: "Still" wants Greek in eurozone US sells 10-years at record low yield S&P 500 down 0.7% to 1354 The euro hit the skids at the ECB fixing, falling to 1.2930 in the first down-leg and to 1.2910 afterwards. Barriers ahead of 1.2900 braced the fall and EUR/USD bounced 60 pips before drifting back to 1.2946 last. Offers are at 1.2960/65. Cable ran through stops below 1.61 in early North American trading and hit more below 1.6075 but rebounded shortly afterwards to 1.6130 in late European trading and then above 1.6150 in the US. Offers remain in the 1.6160/70 area. USD/JPY fell as US 10s came perilously close to breaking support at 1.79% but the level held, risk sentiment improved and the pair rebounded to 1.7973 from 1.7943. USD/CAD hit a 3-month high abvoe the 1.0052 range-top but it was unable to make further headway and drifted back to parity suggesting it's too soon to call it a breakout. Oil and gold also bounced after carving out recent lows; at $96.52 and $1590, respectively