Forex: EUR/USD eases despite improving Spanish yields (Barcelona) - The post data release effect is being seen on the EUR/USD chart, as the “risk on” sentiment is fading after the publication of Markit manufacturing PMI around Europe, with Germany and the EMU disappointing and falling to 46.0 (from 46.8 – consensus of 46.3) and 46.1 (from 46.2 - consensus of 46.3), respectively.

Despite the improving fixed income markets, with the Spanish sovereign 10-year yielding at March 20 lows, at 5.169%, the EUR/USD keeps on retracing daily gains down to 1.3233. The candlestick would only turn into a Doji if the market pulled back to the 1.3200 psychological level.

UBS analysts are bullish: “There is potential for a break above resistance at 1.3386 and extend the strength to 1.3493”, wrote analyst Gareth Berry, pointing to support at 1.3159 ahead of 1.3093.