Eur/usd - 1.2703 ... Despite the retreat fm y'day's high of 1.2744 to 1.2661 in late U.S. session, the single currency also rebounded on short-covering in Asia on supportive comments fm Chinese Premier Wen JiaBao n also Spanish PM Zapatero. PM Zapatero said debt auctions show Spanish Government is able to meet its financing needs as Spain implements austerity measures to lower deficit. Spanish PM Jose Luis Rodrigeuz Zapatero wants China to buy more Spanish bonds n praises China's increase in Spanish bonds this year. However, euro's upside shud be ltd. Offers are tipped at 1.2720 n 1.2740 as market rumoured that Deutsche Bank n Commerzbank might have to raise billions of euros in capital as Germany's two biggest banks confront key decisions about long-awaited transactions. Investors are focusing on the release of German retail sales n manufacturing PMI at 06:00GMT n 07:53GMT. On the downside, bids are located at 1.2660/65 n 1.2630/35.
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