Despite being a quiet summer Friday where there is really no fresh news to speak of, the relentless selling pressure on the single currency has continued unabated. Against the dollar, the euro is now under 1.22, having failed to penetrate 1.23 despite numerous attempts over the past two weeks. The concerted selling of the euro against other majors has been evident once more – EUR/AUD has printed a new record low of 1.1726, EUR/JPY is under 96 and EUR/GBP is under 0.78. The negativity has been fed by renewed pressure on both Spanish and Italian bonds – the 10yr yield in the former is back above 7% today while the IT 10yr yield is up above 6.0%. Risk appetite more generally is in reverse, with the Stoxx 50 down 2%.