ForexLive European Wrap: Risk returns following improved Spanish/French auctions and stronger UK services PMI data ahead of BOE rate decision

UK May PMI services rise to 53.3 in May, with new business index up to 54.8 Eurozone divided as time runs out for Spain  -UK Independent New Democracy's Samaras eyes savings from waste rather than fiscal cuts -ekathimerini.com French Q1 jobless rises to 10% from 0.9% in Q4 2011 Swiss May unemployment 3% from 3.1% in April (as expected) Greek March Unemployment rises to 21.9% from 21.4% in February Irish unemployment rises to 14.8% in Q1 from 14.5% in Q4 2011, highest since Irish financial crisis started Swiss May CPI flat on the m/m, -1% y/y UK May Halifax prices rises +0.5% m/m in line with Reuters  median Spanish Auctions French Auctions UK's Osborne:  A solution to EU crisis is coming.. Fairly steady market this morning ahead of the BOE rate decision, with EUR/USD shrugging of some early pressure which saw a fall to 1.2540, but failed to trigger reported stops just beneath.  Reasonable Spanish and French auctions then added  some fuel to a mildly bullish tone with Asian sovereigns and Middle Eastern names behind the initial recovery. BIS was initially seen countering  the move in the 1.2560's and was then reportedly seen again in the 1.2580's following further upside pressure in the wake of the auctions. Morning's range so far has been 1.2540-1.2595 GBP/USD been heading higher as well bolstered by a stronger than expected services PMI and new business Index, which could end up disappointing those looking for a further QE announcement today. Cable 's  pushed up from 1.5429 to 1.5513 USD/JPY traded up from 79.24 to 79/50, buoyed by further gains in EUR/JPY , which tripped some stops through 100.00 t0 100.10, but sizeable offers  in the cross ahead of the next set of buy stops through 100.35 are so far containing further gains. Exporter offers are currently capping the USD/JPY and more are noted up ahead of 80.00. AUD/USD's been surprisingly subdued following the explosive Asian rally on strong jobs data;  trading a 0.9932-62 range  as EUR/AUD edged 50 pips higher. European bourses are all adding to yesterday's gains with the majority up 0.5- 1% on the morning so far