FXstreet.com (Córdoba) - The euro is lower as concerns about the European debt crisis return to the forefront, comments Nick Bennenbroek, analyst at Wells Fargo. Meanwhile, Spanish and Italian bond yields are higher, with Spanish ten-year yields trading above 6% during the day while global equity markets are responding to European developments.
"We expect the corrective and consolidative action in the currency markets to continue in the coming days, with European events to remain the focus", the analyst says. "In particular, later this week the Spanish government will approve the 2013 Budget and present it to the Parliament, while the results of the bank stress tests are also due".
"The exact details of the Spanish events will clearly dictate the euro's near-term fortunes, though our bias heading into this weekend is for a continued – albeit mild – negative bias for the euro and most foreign currencies", Bennenbroek concludes.
"We expect the corrective and consolidative action in the currency markets to continue in the coming days, with European events to remain the focus", the analyst says. "In particular, later this week the Spanish government will approve the 2013 Budget and present it to the Parliament, while the results of the bank stress tests are also due".
"The exact details of the Spanish events will clearly dictate the euro's near-term fortunes, though our bias heading into this weekend is for a continued – albeit mild – negative bias for the euro and most foreign currencies", Bennenbroek concludes.
