ForexLive US wrap: Euro consolidates overnight losses

Merkel : concerns over mutual liability at upcoming summit USD/JPY and EUR/JPY finding some support 79.50/99.50 respectfully after overnight selloff Eur holding  around the 1.2500 level with sellers above 1.2520 and rumored CB interest at 1.2470 Weidmann comments : Euro area is in a "critical situation "/Euro a "stable currency"/Rakes politicians over the coals for lack of "decision making"/"Europe shouldn't be blackmailed by a Greek exit " French PM getting into the act vowing to eliminate budget deficit by 2017 (France may now cut GDP estimate .5% so his vow may change later) Proposed Greek FM Rapanos will not be able to accept the position (who's next in line ?) Cyprus requesting Eurogroup aid (lucky #5) S&P closes down 1.6% US 10-year yield falls 7 bp to 1.61% WTI falls 0.5% to $79.32 Gold rallies $12 to $1584 EUR/USD traded in a narrow 1.2472/1.2510 range in New York but held up pretty impressively despite all manner of bearish euro news. Merkel setting low expectations for the EU summit, the resignation of the Greek finance minister and the application by Cyrus for a bailout were just a few of the low-lights. Sellers are seen on EUR/USD rallies to 1.2510/20 area; Buy stops are at 1.2525/30; Sellers return toward 1.2580/90. Asian central banks were reported buyers in the low 1.2470s this morning. USD/JPY extended it overnight sell-off triggering stops below the 79.50 area, slipping as low as 79.44 before rebounding, We end the day in the low 79.60s amid talk of trapped longs looking to exit on any rallies back toward 80.00. AUD recouped some lost ground in US afternoon trade despite heavy risk aversion and fears that China may be cooking the economic books. It ends just above parity, having been as low as 0.9971 intraday.