European morning wrap: Euro eeks out marginal gains (bit like yesterday morning)

Bundesbank considers buying australian dollar - sources-  Dow Jones reporting Bundesbank declines comment on possible A$ interest Spain's PM Rajoy: Spain's crisis linked to foreign debt, local government deficits, significant euro-zone problems Spain's Rajoy calls for EU to use "all instruments" to boost growth - Letter sent to EU's Barroso and Van Rompuy Spain's Dep EconMin: EFSF or ESM could be used for loan EU loan to Spain will have 15 y maturity, carry a 3% coupon and have a 5 year grace period (no payments required until 2017) - El Mundo French Industry Minister: France is in an "economic emergency situation" French S&P head: No fears of bank aid plan for Italy. Italy, Spain not in same situation Italy's PM Monti: Italy won't need backstop aid Italy's PM Monti: Has no plans to adopt further austerity measures More Monti: June 28 EU summit must put credible emphasis on growth Larger Greek banks have seen combined daily deposit outflows of 500-800 mln euros in recent days. Smaller bank outflows at 10-30 mln euros - Senior Greek bankers Cyprus central bank governor looks for best possible borrowing conditions, but declines comment on if and when Cyprus will apply for aid Earthquake magnitude 4.9 in Taiwan - Central weather bureau BOJ's Shirakawa: Europe's debt woes biggest risk to global economy, need to ensure market stability Japan FinMin Azumi: Believe recent forex moves don't reflect economic fundamentals, are one-sided German FinMin: Does not believe Italy will be next country to be hit by contagion - Italian newspaper EUR/USD up at 1.2535 from early 1.2495, having been as high as 1.2553.   Middle Eastern sovereign buying noted early.  The fledgling rally was slowed though by notable ACB and AAA-bank sales.  Reserve bank of India was one ACB mentioned by name, while the AAA bank was once again thought to be selling on behalf of the SNB. Cable up at 1.5565 from early 1.5545, having been as high as 1.5597 at one stage.  Middle Eastern sovereign buying also notable in this paring.  EUR/GBP marginally firmer at .8050 from early .8030,  reflecting better euro tone. USD/JPY comatose at 79.65, effectively unchanged on the day.  There was some decent selling interest out of Hong Kong early, but it weas easily absorbed. AUD/USD up at .9970 from early .9940.  Reports of Bundesbank interest in aussie (see above) no doubt lent some underpinning