Volcano Eruption in Iceland ( Close View )

EUR/CHF, EUR/USD Flows − German Q1 +0.2%q/q, ECB Noyer, Quaden; EUR/CHF eye SNB

More reassuring comments from ECB Policymakers, with EUR off lows, but interest still to sell on rallies to 1.2650/1.2700 for 1.2510 14-m lows, then 1.2500 options. German prelim Q1 GDP +0.2%q/q, vs consensus of +0.05%, +1.7%y/y vs +1.2% expected, While ECB/BdF Christian Noyer says satisfied with ECB market intervention as monetary policy was threatened. ECB would do everything it could (message to Buba Axel Weber too?) to get markets to work normally again. ECB/BnB Guy Quaden says euro currency will survive the current crisis. Greece has no options than to accept austerity measures. Public finance problems of Spain, Portugal not as severe as Greece. On FX, EUR bids at 1.2600-10, but remains offered, while EUR/CHF at 1.4040-45, eye SNB ahead of all time lows of 1.4005. WL