Despite frequents attempts over the past 10 days or so to penetrate 1.23, the single currency has again been met by a wall of sellers at this level during this morning’s London trading session. Some relatively stern comments from ECB Governing Council member Asmussen has weighed on sentiment. He claimed that the north-south divide in Europe was currently more pronounced than at any time in the past 10-15 years, and that a refusal by Germany’s Constitutional Court to give their judicial imprimatur to the ESM would be a body blow for the single currency. In addition, the Bank of Spain announced that bad loans jumped to almost 9% in May, a remarkably disturbing outcome which is only headed in one direction in coming months. In the near term, the bears will want to test the downside to see whether the buyers again have the willpower to step up at around the 1.22 level as they did yesterday.