European morning wrap: Euro steady as we close in on Greek election

Spanish 10 year govt bond yield hits 7% Spanish minister Garcia-Margello:  Calls for ECB to ease market tension Greek bank stocks see sharp rally. Reuters reports that move on market talk that pro-bailout parties likely to win June 17 election Swiss National Bank:  Will enforce cap on franc of 1.20 per euro.  Prepared to buy fx in unlimited quantities SNB's Jordan:  Says expect significant slowdown in Swiss Q2 GDP growth Merkel: G20 to discuss sustainable growth measures French FinMin Moscovici:  France will meet its 3% deficit target in 2013.   Can do so without austerity cuts Greek Q1 unemployment at 22.6%, up from 20.7% in Q4 2011 Greece's Syriza won't scrap memorandum - ekathimerini  German FDP's Fricke: Greece euro future is 'their decision' - Bloomberg TV German family-owned firms doubt euro - Handelsblatt EUR/USD sits at 1.2577, to the pip where it sat when I arrived.   We did see a slight sell-off, which reached a session low of 1.2542 as Spanish govt bond yields sky-rocketed. There have been more reports this morning of Middle East buying into the dips, with SAMA's name very much in the frame. We sat circa 1.2555 in late morning trade when reuters reported Greek bank stocks rallying strongly on talk that pro-bailout parties likely to win election.  Go figure.  EUR/USD duly rallied back to where it started. Cable up marginally at 1.5540 from early 1.5525.  However the pairing did get hit pretty hard in early trade, falling to session low of 1.5473 before rebounding strongly.  Talk had a "large corporate" buying aggressively under 1.5500 and this sowed the seeds for the recovery. USD/JPY continues to see listless trade, fractionally lower at 79.30 from early 79.40.