Good day traders!
It seems that the sharply higher Spanish bond yields have quickly and swiftly become the driving force in the market as New York opens. Yield on the 10 year Spanish debt has pushed above 7% and that is causing the euro to sag after it initially rose on the session due to the Greek election.
Traders have turned their attention to other matters that also require solutions and Spain is currently in their sights. Euro having traded as high as $1.2746 in the Asian session is now down at 1.2616.
The above chart tells us that there is a possibility that the pair could drop all the way to the 1.253 region.
That’s all for now folks. Will keep you all updated as news and interesting stuff happens.
Currency Trader and Market Analyst