FXstreet.com (Córdoba) - European developments are once again the main driver of FX market moves, says the Wells Fargo team. "The euro gained as Moody's held Spain's credit rating steady, surprising some market participants that had expected Spanish debt to be downgraded to junk status. The news is helping Eurozone bond markets, with ten-year yields in Spain, Italy and Portugal all lower", they say.
"European Leaders begin a two-day summit tomorrow, and although no key decisions are expected at this gathering, markets will be watching the headlines for any signs of progress towards further assistance for Greece or Spain", Wells Fargo adds. "Without an imminent event to break the market's optimistic mood, we see further near-term gains in the euro and most foreign currencies, and weakness in the U.S. dollar and Japanese yen".
"European Leaders begin a two-day summit tomorrow, and although no key decisions are expected at this gathering, markets will be watching the headlines for any signs of progress towards further assistance for Greece or Spain", Wells Fargo adds. "Without an imminent event to break the market's optimistic mood, we see further near-term gains in the euro and most foreign currencies, and weakness in the U.S. dollar and Japanese yen".
