Spanish debt sale Miss weighs on euro trading
Traders were European meeting disappointed, a Spanish debt sale, which brought higher yields and missed a 3 billion maximum target by 20 million euro. Spanish 2014 bonds were sold to 5,204% yield, compared to 4.335% in June, and 5-year notes were 6.46% in today's sale until sold by 6.07% sale on June 21.
Show higher than expected Spanish borrowing costs a dropping confidence in the ailing economy. The German House will most likely approve the EFSF-100 billion euro aid package after Spain; But German Finance Minister Schäuble legislators said that the Spanish Government for the bailout loans were responsible. The Minister further said that the direct bank recapitalisation can be done only under a condition of the sovereign responsibility. This means that the Spanish government debt will likely increase with the upcoming stimulus package, thereby further confidence in Spanish debt lower.
Meanwhile notes to 0.86% yield, down from 1.43% in the last auction, were French 2017 as investors flock to the relatively safer French economy sold. The European session opened with shares up over 1%, vice versa this sent the euro twenty points behind short-term support of 1.2300, but the gains quickly temporary as EURUSD and European shares were most of these profits. Following the news of the Spanish debt sale closer to 1.2250, slightly above the 50% expansion from may up to June low fallen euro.
In other European news UK retail sales (without a car fuel) increased by 0.3% in June, though still disappointing expectations for a rise of 0.4%. Swiss exports were also to 2.6% in June. Many data fed comes including sales existing for June, leading indicators and the Philadelphia today from the United States. for July. Traders should watch for the results of the German House of Commons vote on the Spanish aid package.
EURUSD15 minute: 19 July 2012
Traders were European meeting disappointed, a Spanish debt sale, which brought higher yields and missed a 3 billion maximum target by 20 million euro. Spanish 2014 bonds were sold to 5,204% yield, compared to 4.335% in June, and 5-year notes were 6.46% in today's sale until sold by 6.07% sale on June 21.
Show higher than expected Spanish borrowing costs a dropping confidence in the ailing economy. The German House will most likely approve the EFSF-100 billion euro aid package after Spain; But German Finance Minister Schäuble legislators said that the Spanish Government for the bailout loans were responsible. The Minister further said that the direct bank recapitalisation can be done only under a condition of the sovereign responsibility. This means that the Spanish government debt will likely increase with the upcoming stimulus package, thereby further confidence in Spanish debt lower.
Meanwhile notes to 0.86% yield, down from 1.43% in the last auction, were French 2017 as investors flock to the relatively safer French economy sold. The European session opened with shares up over 1%, vice versa this sent the euro twenty points behind short-term support of 1.2300, but the gains quickly temporary as EURUSD and European shares were most of these profits. Following the news of the Spanish debt sale closer to 1.2250, slightly above the 50% expansion from may up to June low fallen euro.
In other European news UK retail sales (without a car fuel) increased by 0.3% in June, though still disappointing expectations for a rise of 0.4%. Swiss exports were also to 2.6% in June. Many data fed comes including sales existing for June, leading indicators and the Philadelphia today from the United States. for July. Traders should watch for the results of the German House of Commons vote on the Spanish aid package.
EURUSD15 minute: 19 July 2012
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