EUR, To Be Long or Short?
By MarketPulse FX:
By Dean Popplewell
It was important that you did not close your eyes, otherwise you would have missed that Spanish relief rally. The lack of market conviction has investors believing that another eurozone member will eventually be seeking a handout. Despite their government assurance of no, will it be Italy? The market is not so sure that Spain, the EU members fourth largest economy, is capable of going it alone from here on in. The exact amount of emergency funding that Spain will receive will be decided after two audits of its banks are completed within the next few days. So far, the+EUR100b potential sweetener of a “credit line” has not been capable of reducing the borrowing costs for either Italy or Spain. The rise in both countries bond yields is an indication that the market is still worried about the countries’ finances. Spain is inComplete Story »
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