FXstreet.com (Barcelona) - The EUR/USD is extending its daily decline, from 1.3075 zone in early Asian session down to the 1.3000 psychological level, currently supporting the pair against further downside. Moody's downgraded five Spanish regions overnight and it's been reported that Spanish lenders will be transfering housing sector related assets to bad banks with large average discounts: 52.2% on newly constructed homes, 47.5% to second hand homes, and 85% to undeveloped land.
Spain released its Q3 GDP, down by -0.4% quarterly and -1.7% yearly. The government sold 6 month bills at an average yield of 2.023% (previously at 2.213%), and 3 month debt at 1.415% (1.203% previously), having a mixed result.
“We are more positive than negative – but only just!”, wrote Commerzbank analyst Karen Jones, pointing to the challenge and potential break above 1.3173/80 resistance and support at 1.3000/1.2995.