News Forex: EURUSD falls below 1.26 as yields soar Spanish

Basic Articles
- Shortages of dollars Seen on $ 2 trillion Gap - Bloomberg
- The heads of Euro sign Greek austerity softening, such as looms Summit - Bloomberg
- Islamists in Egypt demand the presidency that the NEAR army control - Reuters
- Conservatives of Greece begin coalition talks - WSJ
- Overvoltages yields Spanish, Greek Relief Wanes - WSJ
Meeting summary Asia / Europe
Greek elections gave the surprising result of the victory of the New Democracy strong, with the rescue team to get enough votes to be able to form a coalition government with the rescue of the other major party, the PASOK. If this materializes, it will continue to fight the rescue party Syriza outside the main opposition party, but it is only likely to last long. Early reports indicate that PASOK will not form a coalition government without the inclusion of Syriza, whose leader Alexis Tsipras has already said his party will not join the new democracy in a "grand coalition" of all kinds.
In a bit of speculation on how this will develop the Greek drama, as a politician, Mr. Tsipras plays his cards right, because there seems to be in the game for the long term. So if Syriza had to win yesterday would have been only a very narrow margin, which would probably have deteriorated rapidly in case of Greece need another rescue under his command (it will be in about a month ). On the other hand, with a strong presence, Syriza is ready to get the majority support of a few months, when the Greeks return to the polls (assuming that the New Democracy and PASOK to form a government), the coalition of center will not do anything to change the material from the expected path of Greece outside the eurozone.
As a result of Greek elections were digested, it is now clear that the G-20 will not make the nuclear option to flood markets with hundreds of millions of dollars of liquidity to ensure price stability in the coming days. It was most of the reasons why the markets rallied in late last week, and without the promise of greater flexibility, most of the taste after the falling U.S. dollar has been stifled. This "rebound" to reality after the election has dragged on EURUSD from its highest level in three weeks back at 1.2600 1.2747 just before the U.S. equity cash open.
First, no smoothing along the way, investors have thrown in the mass Spanish debt, with the yield of the benchmark 10-year-emerges today 7.285% to 6.840 after the opening %. These are the highest yields of 10 years have seen Spanish since late April 1997. In the short end of the yield curve, the yield of 2-year Spanish note rose higher than 5.592%, its highest level since late November 2011.
Looking at European Credit, Italian debt is well under pressure, with 10-year notes containing 6.057% at the time of writing this report, after rising to 6.173% earlier in the day. The yield was over 10 years to 14 June, when it reached 6.342%. In the short end of the curve, Italian 2-year note rose 18.9 basis points give 4.522%.
Chart EURUSD 5 minutes: 18 June 2012

Lists created by MarketScope - Prepared by Christopher Vecchio

The dollars of Australia and New Zealand are in the day, its appreciation against the dollar by 0.22 percent and 0.34 percent. The Canadian dollar is the worst performer and lost 0.42 percent against the dollar of the United States. Having to 0.88 percent of the trading EURUSD was 0.31 percent lower at the time of writing. USDJPY was a little firmer, gaining 0.22 percent on Monday so far.
24-Hour Price Action

Key Levels: 13:45 GMT


So far, on Monday, the Dow Jones FXCM Dollar (ticker: USD) is trading higher at 10,096.63 at the time of writing, after opening at 10,060.99 (index closed at 10,072, the 32 Friday). The index was mainly driven more in. high and low 10111.05 10060.88