FXstreet.com (Córdoba) - Reports earlier today indicated that Spain would seek an emergency credit line this week, but the EURUSD's explosive move came after German lawmakers said that they would be willing to extend the line of credit to Spain, explains Christopher Vecchio, Currency Analyst at DailyFX. "This suggests that the Spanish bailout – which would have to pass through the German parliament – may be better received than previously thought".

"Headed into the Euro-zone Summit on Thursday and Friday, we recognize that expectations are low, but we think there is significant scope for a surprise", the analyst says. "The EURUSD could reach its September high of 1.3170/75 by Friday."