Source: ForexYard
In a sign of market stress European bond yields continue to rise with the spread between German and French 10-year bonds climbing to an EMU high of 195 bp. This has kept pressure on the EUR with the EUR/USD making a new overnight low. Today investors will be measuring the success of bond auctions from both France and Spain.
Today Spain (09:30 GMT) will auction up to EUR 4 billion in 10-year bonds and France (10:00 GMT) will auction up to EUR 7 billion. Successful auctions may help to restore short-term confidence but disappointing results may lead to European bonds being sold off once again. Another threat to keep in mind is the possibility of a clearer to increase margins required to trade Spanish bonds.
Additional data releases will come from the UK with retail sales (09:30) and from the US the Philly Fed Manufacturing Index (15:00).
Read more forex trading news on our forex blog.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
