ForexLive US wrap: Spanish flu sinks risk

US CPI rises 0.3%/0.2% ex-food and energy, as expected China lowers reserve requirements for certain rural banks  JPM's Dimon: LTRO wasn't sufficient to fix Europe's problems Loss of Dutch AAA rating could push yields up 100 bp: ECB's Knot Spanish 10-year yields rose 17 bp to 5.99%, credit defaults reach record 498 bp; shares fall 3.5% Univ of Michigan sentiment index falls to 75.7 from 76.2 ECB's Knot: ECB "ver far" from resuming bond buying Tensions rise between ECB managing board and governing council Spain would be dead without ECB funding; Spanish official  UK affirmed at AAA by S&P; outlook stable Bernanke makes no mention of economy/policy in NY remarks A strong session for the dollar as the disappointing Chinese GDP and renewed Spanish sovereign debt fears hung over the market. EUR/USD fell throughout the morning from opening levels of 1.3175 to 1.30695. We close at 1.3080. EUR/JPY closes on lows of 105.75 from 106.75 opening. AUD down at 1.0370 from early 1.0475. USD/JPY narrowly range-bound: 80.82/81.13.