European morning wrap: Mild risk on backdrop to end the week

Buba's Weidmann: ECB has taken 'considerable risks' with measures Riksbank Dep Gov Jansson: State finances 'catastrophic' in many Europe countries German Gfk June consumer sentiment indicator steady at 5.7, from upwardly revised 5.7 in May (prev 5.6) Slightly better than Reuter's median forecast of 5.6 French consumer confidence 90 in May, up from upwardly revised 89 in April (prev 88). Slightly better than median forecast of 89 French/German 10 year govt bond yield spread narrows to Dutch/German 10 year govt bond yield spread narrows to German FinMin spokesman: Not problematic if next Greek aid tranche delayed beyond end of June Portugal opposition Socialists stand by bailout commitments - Opposition leader Belgian ForMin Reynders: Greece can't handle further spending cuts Europe's slump deepens as Kabuki summit falls short - AEP at The Telegraph European stocks,  gold, oil, US treasury yields all marginally firmer, reflecting a mild risk on backdrop. EUR/USD up at 1.2585 from early 1.2530, having reached the dizzy heights of 1.2603 at one stage.  The release of slightly better than expected German and French consumer confidence data (see above) lent the single currency early support. Then as European stocks turned higher, so EUR/USD ground higher.  Talk had sell orders clustered up at 1.2600/20, so it wasn't overly surprising when we stalled out at 1.2603.  Comments from likes of Weidmann and Jansson (see above) didn't really help. Some talk of buy stops through 1.2605 and 1.2625 now.  Barrier option interest remains down at 1.2500. Sell stops just below there and more through 1.2480, before further barrier option interest at 1.2450. Cable up marginally at 1.5680 from early 1.5650, in line with mild risk on backdrop. Same with AUD/USD, which is up at .9790 from early .9740.