ForexLive Asia-Pacific wrap: Moody's downgrades Spanish banks

Moody's downgrades 28 Spanish banks Graeme Wheeler to take over RBNZ in Sept Talk of Chinese rate cut in Aug Xinhua: Chinese companies blocked from issuing debt Vote on consumption tax awaited in Japan Japan May corp service price index +0.1% vs +0.3% exp US Treasury sees urgency among European leaders Axel Weber not optimistic on EU Summit South Korean consumer confidence hits 3-month low Shanghai composite -0.45%, lowest since Jan Nikkei -0.9% S&P 500 futures +0.2% NZD leads, USD lagsEarly optimism is fading. EUR/USD climbed as high as 1.2524 but has been wilted back to opening levels at 1.2506. Bids around 1.2594 continue to underpin the pair. The Spanish bank downgrades were priced in after the sovereign downgrade on June 13.The driver is yen strength at the moment as the crucial Japanese vote on the consumption tax is set to take place. The fallout could spark the resignation of PM Noda and the formation of a new political party. European worries continue to persist despite no further developments.