Intraday Market Thoughts

Euro Finding More Comfort in Downside

by Ashraf Laidi
Jul 23, 2012 20:26

It may no longer matter for Spanish aid to bypass state books and onto ailing banks when deepening signs of economic contraction are joined by harsh austerity measures. The Troika was able to capture the imagination of the market by directing funds to Spanish banks without raising the sovereign debt burden. But as the autonomous regions seek bailouts from Madrid (Valencia request for aid may be followed by at least 3 other regions) and contracting GDP complicates the meeting of debt/GDP targets, the burden would have to end up hitting the sovereign books. EUR now finding more comfort om the downside. HERE ARE THE LATEST PREMIUM INSIGHTS on EURUSD, oil, GBPUSD and more. Non subscribers click here:


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