European morning wrap: Waiting for the ECB innit…….

German CDU parliamentary chief Kauder:  Spain banks can't get direct aid from euro backstop Spanish FinMin:  Not seeking immediate bank aid. Awaiting results of audit to outline recapitalisation needs of banks EU Commission:  Outlines initial plans for banking union EU's Barroso: Bank resolution proposal is essential step towards EU banking union. Will make banking sector more responsible Ex Greek FinMin Papaconstantinou: Spain is biggest issue for euro zone Papaconstantinou:  Greeks face difficulty or catastrophe New Democracy and Syriza clash over leaders' TV debate Tsipras: Syriza plan only one that leads Greece out of crisis  (scary ain't it) Ex-PBOC adviser Li: Sees faster yuan rise in long-term if US/EU economic weakness continues Euro zone Q1 GDP confirmed flat q/q.  Y/Y revised fractionally lower at -0.1% from previous flat Spanish April industrial production -8.3% y/y, down from -7.5% in March and worse than median forecast of -6.5% UK May constructio0n PMI 54.4, down from 55.8 in April and lowest read in 3 months.  Marginally stronger than median forecast of 54.2. French govt signs off on decree to lower retirement age to 60 in certain circumstances.  Will cost an extra 3 bln euros per year from 2017 - Minister Nein! Nein! Nein! again - AEP at The Telegraph EUR/USD sit at 1.2505, 3 pips firmer than the 1.2502 which greeted me first thing.  It's been a little more active than the lack of net change would suggest, but the market has been loathe to push the envelo[pe in either direction ahead of the outcome of the ECB deliberations.  The strong majority is going for the ECB to leave rates unchanged this time round (why am I always in the minority?) Early reports had sell orders clustered from 1.2520 through 1.2550 and so it was no huge surprise when the early rally fizzled out at 1.2528. USD/JPY up at 79.10 from early 78.95, having been as high as 79.26.  Big Japanese bank out of Tokyo notable buyer. Cable up at 1.5460 from early 1.5425 having been as high as 1.5487.   Sell orders were well noted in 1.5440/50 area were well-documented and they capped early rally attempts. Eventually, with middle eastern sovereign buying notable, this interest was taken out and buy stops just above tripped extending the ascent. The release of poor contruction PMI (see above) then helped stymie the rally.