FXstreet.com (Barcelona) - On the subject of the recent S&P downgrade in Spain, “The targets look too optimistic, however we won't have evidence of this until 2013 gets going.” writes Macro Strategy Analyst J. Reid at Deutsche Bank. Until then the country can be supported by the ESM/ECB operations, the market's patience is likely to slowly run out if they don't request the aid soon.

According to Reid, “Clearly whether Moody's downgrades to HY this month might be a catalyst and they have recently said that they will announce the results of their review by the end of the month. So with regional elections on the 21st and large redemptions towards the end of the month, the next two weeks could see a lot of action around Spain.”