Helping the mood is the reaffirmed Spanish sovereign credit rating at Baa3, by Moody's, instead of the downgrade to 'junk' status. The rating agency based its review on the reduced risk of Spain losing market access due to the ECB's OMT programme, available for request. The Spanish 10-year Letra is yielding at 5.58%.
The focus has shifted to overhead resistance at 1.3173/80 as target (recent high and a double Fibonacci retracement): “ We remain wary of initial failure here, the market will need to clear this key resistance in
order to introduce scope to 1.3487/1.3536 (2012 high, the 50% retracement and the 200 week ma), wrote Commerzbank analyst Karen Jones.