Christine
06-22-2012, 04:19 PM
EUR/USD retested the base of the range around 1.2520 a short-while ago despite a continued slide in Spanish yields.
Spanish 10s are down to 6.34%, nearly 100 bp lower than the 7.31% spike high on Monday.
Be careful about selling weakness ahead of the weekend with the market pricing -in EFSF buying of Spanish and Italian debt in the wake of next week’s EU summit.
http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spain-330x331.png (http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spain.png)
in terms of spreads, watch the 4.60/4.70 area over bunds. A break of support could see a sharp contraction in the spread, a euro-bullish factor.
http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spread-330x439.png (http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spread.png)
http://feeds.feedburner.com/~ff/forexlive-rss?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/forexlive-rss?a=hAJvH4b0pW0:NAG9ndoCwu4:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/forexlive-rss?i=hAJvH4b0pW0:NAG9ndoCwu4:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/forexlive-rss?a=hAJvH4b0pW0:NAG9ndoCwu4:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/forexlive-rss?d=qj6IDK7rITs (http://feeds.feedburner.com/~ff/forexlive-rss?a=hAJvH4b0pW0:NAG9ndoCwu4:qj6IDK7rITs)
Spanish 10s are down to 6.34%, nearly 100 bp lower than the 7.31% spike high on Monday.
Be careful about selling weakness ahead of the weekend with the market pricing -in EFSF buying of Spanish and Italian debt in the wake of next week’s EU summit.
http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spain-330x331.png (http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spain.png)
in terms of spreads, watch the 4.60/4.70 area over bunds. A break of support could see a sharp contraction in the spread, a euro-bullish factor.
http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spread-330x439.png (http://www.forexlive.com/wp-content/uploads/2012/06/6-22-spread.png)
http://feeds.feedburner.com/~ff/forexlive-rss?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/forexlive-rss?a=hAJvH4b0pW0:NAG9ndoCwu4:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/forexlive-rss?i=hAJvH4b0pW0:NAG9ndoCwu4:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/forexlive-rss?a=hAJvH4b0pW0:NAG9ndoCwu4:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/forexlive-rss?d=qj6IDK7rITs (http://feeds.feedburner.com/~ff/forexlive-rss?a=hAJvH4b0pW0:NAG9ndoCwu4:qj6IDK7rITs)