European morning wrap: Discretion is the better part of valour

ECB's Draghi: We have reached a contingency where political decisions are predominant over monetary policy decisions we can take in short-term More Draghi Merkel:  Germany doing enough for consumer demand Ex-Deutsche CEO: Euro bonds would ruin Germany Secret polls are pointing to New Democracy fractionally ahead of Syriza EU's Van Rompuy will host call Friday with leaders of Germany, Italy, France and Britain to prepare for G20,  according to spokesman EU's Rehn: Sees downside risk for economy in short-term.  Financial market turbulance threatens EU economy ECB's Weidmann: 100 bln euro package for Spain contains sufficient safety margin ECB's Praet: Euro zone countries will inevitably have to surrender more national sovereignty, increase policy coordination FDP's Bruederle:  Would be better for Greece to stay in euro BOJ's Shirakawa: Japan's economy is starting to pick up Japan MOF   Nakao: Will respond to fx movements as appropriate Bank of Spain:  Spain debt-to-GDP ratio 72.1% end Q1 vs 68.5% 2011 UK April visible trade deficit -£10.103 bln, worse than median forecast of -£8.5 bln, second largest deficit on record Euro zone April trade surplus 5.2 bln euros, better than Reuter's median forecast of 3.0 bln.  On minus side, March trade surplus revised down to 7.5 bln from previous 8.6 bln Euro zone Q1 employment -0.2% q/q, -0.5% y/y Not much net change in the major spots and crosses this morning.  Seems to be very little interest to get overly involved just before the Greek election and G20 meeting at the weekend. EUR/USD slightly easier at 1.2615 from early 1.2635.  The slight dip came in late morning trade and didn't seem to be driven by anything in particular. Seemed all about position squaring this morning. USD/CHF up at .9520 from early .9498.  Rumour of Swiss National Bank sitting on the bid below .9500. Cable effectively unchanged at 1.5545.   Managed to  shrug off crap trade data (see above) and growing speculation of early QE.  EUR/GBP down at .8115 from early .8130, having been as high as .8152 at one stage.  Talk decent-sized buy stops now gathering through .8155 and .8170. USD/JPY extended overnight sell-off slightly, down at 78.72 from early 78.85 having been as low as 78.61.   Jawboning from likes of  Nakao and Shirakawa (see above) had no impact.