ForexLive US wrap: Hope springs eternal

Hopes rise for Spanish aid request on EU conference call Saturday Deputy PM Seanz denies Spain will request aid; says Spain still waiting for banking figures US trade deficit dips to $50.1 bln in April from $52.6 bln in April Canadian employment rises 7,700; unemployment rate steady at 7.3% US wh0lesale inventories rise 0.6%, sales rise 1.1% in April Obama: Private sector doing just fine in the US Fox Business reports the US is pushing a TARP-style bailout for Europe IAEA says talks with Iran failed Spanish bond yields rise sharply despite widespread talk of bank bailout; Closes week at 6.25% though Madrid shares rise 1.8% EUR/USD opened soft and pushed slightly below support at 1.2440 to trigger weak stops before turning high late in the European session. Heavy talk that a Spanish bank bailout could come as early as tomorrow prompted some short-covering. US equity markets opened quite weak but rallied and trade up 0.6% late in the session. USD/JPY benefited from covering in an array of crosses like AUD/JPY, EUR/JPY and GBP/JPY. It ends the week near 79.50 amid reports of corporate sellers towards 80.00 in size. GBP/USD dipped toward 1.5400 before rebounding and ending the day in the 1.5960s. AUD/USD was little changed on the day ahead of a rash of Chinese economic data over the weekend. We trade at 0.9905 late in the NY afternoon. Family duty calls, so I will leave you for the afternoon. Great weekend to all.