Source: ForexYard
Monday’s trading saw the 17-nation currency correct its losses as it traded up versus most of its Major currency counterparts including the U.S Dollar. However, new concerns over the economic stability of both Spain and Italy will continue to affect the movements of the single currency.
The single currency momentarily traded below $1.30 versus the U.S Dollar after Spanish government bond yields appreciated due to fresh concerns over the country’s future growth.The last time the Euro traded below the $1.30 level was back in February of this year.
Renewed pressure on Spanish Bonds pushed the 10-year yield above the 6 percent mark for the first time since the beginning of December.
Elsewhere, Italian 10-year bonds appreciated to 5.67 percent,nearing a two-month high.The fresh concerns over the financial stability of both Spain and Italy could have a negative affect on the 17-nation currency.
Tomorrow, Spain looks to sell 12- and 18- month bills, followed by Auctions on Thursday.
Forex Market Analysis provided by ForexYard.
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