FXstreet.com (Barcelona) - Despite EURUSD strength, which accoirding to NAB, "is consistent with a ‘traditional' view of how improved risk sentiment impacts currencies", the euro will continue to struggle to step outside of its own shadow unless a reversal in recent bond patterns is seen, says the bank.
NAB morning note states: "Euro bounces came despite Germany sold 2-year notes at a negative yield for the first time and 5yr German yields are at new record lows. At the same time, Spanish and Italian yields are higher. Spanish bond auctions later today are going to be important here, while note we are currently still awaiting confirmation that the German Bundestag (lower house) has granted its approval to the plan to provide up to EUR100bn for Spanish bank recapitalisation."
NAB morning note states: "Euro bounces came despite Germany sold 2-year notes at a negative yield for the first time and 5yr German yields are at new record lows. At the same time, Spanish and Italian yields are higher. Spanish bond auctions later today are going to be important here, while note we are currently still awaiting confirmation that the German Bundestag (lower house) has granted its approval to the plan to provide up to EUR100bn for Spanish bank recapitalisation."
