FXstreet.com (Barcelona) - Euro sentiment has accelerated its downside on Wednesday, despite some market chat that Greece would get two extra years in order to accommodate its finances to fulfill the EU requests.
Although Spain was not in the headlines so far in the day, the FX community is still suffering yesterday comments that the economic activity in the Mediterranean country would ease more than expected in the third quarter.
Against a backdrop of increasing deterioration in the Spanish fundamentals and despite the recent positive political results in the last regional elections and the well-received short-term auction of Letras, Senior Currency Strategist at Rabobank, Jane Foley, comments “While the degree of any market tension over the weeks ahead will likely be calmed by the knowledge that the ECB’s OMT awaits, we see risks of pullbacks in EUR/USD potentially to the 200 day sma at EUR/USD1.2836”.
Although Spain was not in the headlines so far in the day, the FX community is still suffering yesterday comments that the economic activity in the Mediterranean country would ease more than expected in the third quarter.
Against a backdrop of increasing deterioration in the Spanish fundamentals and despite the recent positive political results in the last regional elections and the well-received short-term auction of Letras, Senior Currency Strategist at Rabobank, Jane Foley, comments “While the degree of any market tension over the weeks ahead will likely be calmed by the knowledge that the ECB’s OMT awaits, we see risks of pullbacks in EUR/USD potentially to the 200 day sma at EUR/USD1.2836”.
