Spain's EUR White Knight

Wed, 04/18/2012 - 11:57 EDT - Seeking Alpha

By MarketPulse FX:
By Dean Popplewell
The EUR bears can be thankful that Sarkozy cannot keep his own thoughts to himself. Stating the obvious, that a strong single currency hurts exporters, and its value should be discussed with the ECB, has woken up a market that other wise would have slept until tomorrows Spanish funding requirements. This week is a tough auction week for Euro members. Germany had 2-year product to shift today and Spain and France come to the debt market tomorrow. Spain auctions 2′s and 10′s, while France has interest in 2′s,3′s and 5′s. German product, with the ultra low yields, is beginning to struggle to attract strong demand but is unlikely to have a strong affect on the EUR. Why? With the desirable Bunds, investors in this environment tend to prioritize safety over returns. It's Spain that everyone is focused on. It's this auction that will set the tone forComplete Story »

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Spain's EUR White Knight

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