ForexLive US wrap: Euro firms in range on Spanish aid hopes

Chinese premier Wen: China continues to invest in Euro area debt; China will stabilize as policy measures take hold EU's Barroso: Europe will do what is needed to stabilize euro zone US initial jobless claims fall 3k to 382k; worse than expected Markit US PMI steady at 51.5 in September SNB's Danthine: Strong franc still poses challenges to Swiss economy Philly Fed index -1.9 in September from -4.5 in August; better than expected Italy slashes 2012 GDP forecast to -2.4% from previous -1.2% EcoMin says Italy has no plans to seek aid Fed's Kocherlakota: Keep rates low until unemployment reaches FTD: Official creditors may take haircuts on Greek debt, except ECB and IMF Spain in talks with EU over aid: FT S&P 500 unchanged at 1460 US 10-year note unch at 1.77% It was a pretty newsy day in New York but markets were fairly lethargic. We extended losses begun overnight to the 1.2920 area in early New York trade and then backed and filled below 1.2960 for much of the session. We eventually broke above 1.2960 but could rally only to 1.2975 on the news in the FT that Spain may be set to ask for aid as early as a week from today. USD/JPY fell early in NY as well, dipping as low as 78.02 before the dollar staged a nic bounce. After the fact, whispers spread that Kampo may have been a buyer ahead of the 78.00 level. Prior to the fall we heard that there were solid bids in the 78.00 area down to 77.80. EUR/JPY bounced from its lows but ends the day below the 200-day average, closing at 101.45.