FXstreet.com (Barcelona) - The EUR/USD is extending its decline on Thursday after the better than expected Spanish bond auction results. The sovereign sold a total of €4.799B, above the targeted €4.5B. The average 10-year yield dropped to 5.666% (previously at 6.647%) after selling €0.859M. The extension lower might be due to concerns that Spain has found more time to stall on asking for a bailout.
The EUR/USD reached as low as 1.2930 and is settling at 1.2930/40 for now. Later, EU's Rompuy and Manuel Barroso will be speaking at the EU-China summit with Premier Wen.
Commerzbank analysts are cautious, with technical indicators implying a pullback near term to 1.2932/1.2829 (200 day ma). “Provided this holds we should have a renewed upside attempt”, wrote analyst Karen Jones, adding that failure at 200 day ma will target the 1.2572 uptrend.
The EUR/USD reached as low as 1.2930 and is settling at 1.2930/40 for now. Later, EU's Rompuy and Manuel Barroso will be speaking at the EU-China summit with Premier Wen.
Commerzbank analysts are cautious, with technical indicators implying a pullback near term to 1.2932/1.2829 (200 day ma). “Provided this holds we should have a renewed upside attempt”, wrote analyst Karen Jones, adding that failure at 200 day ma will target the 1.2572 uptrend.
