10-Yr: -01/32..2.956%.. USD/JPY: 79.16.. EUR/USD: 1.4150
Dollar Gains: The dollar index is holding a modest gain of 0.3% as markets ready for the results of the next round of European stress tests. EURUSD is little changed near 1.4150 ahead of the results as current rumors have 10 of 91 banks failing. Italy's trade deficit (-EUR2.41 bln actual v. -EUR2.97 bln expected) was narrower than expected which is a positive for a country that was staring into the abyss just a few days ago. GBPUSD is off 30 pips near 1.6115 as the pair trades lower for a second consecutive session. Short-term support will come into play in the 1.6070 area with more important help near 1.5850/1.5900. USDCHF continues to work its way off Wednesday's record low, trading higher by 15 pips at .8170. Resistance lies near .8300 and should provide a lid on any short-term advance.
