The euro continued to move higher throughout friday, but remained well within its recent range, while global equities advanced as euro zone optimism picks up ahead of the weekend. While the timing of a Spanish bailout remains highly uncertain, there is growing consensus that an aid request it is more likely than not after S&P downgraded Spain’s rating on Thursday. As such a request would trigger ECB bond buying program and lead to a further reduction in the euro zone bond yields, it could at least a near-term boost to the euro and most risk-sensitive assets.
Meanwhile in the US, a report showed producer prices grew less than expected in September, leaving the Federal Reserve room to continue its USD-weakening QE program
Above, must be able to penetrate EURUSD 1.2990 to continue the rising trend, while below 1.2922 will determine, whether the pair will be back under the 1.2900 area
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