News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/SYKs5FXzIn
  • USD/JPY IG Client Sentiment: Our data shows traders are now at their least net-long USD/JPY since Sep 30 when USD/JPY traded near 111.35. A contrarian view of crowd sentiment points to USD/JPY strength. https://www.dailyfx.com/sentiment https://t.co/zKjU8inhgV
  • - Euro Area inflation still mostly transitory, some components partly more persistent than previously though. - If elevated inflation lasts much longer, it will likely have effect on expectations $EUR
  • ECB's Rehn says there is still plenty of economic slack in Europe $EUR
  • Coming up at half past: my weekly webinar looking at the charts, the sentiment indicators on the calendar this week and the IG client positioning data. Do join me if you can https://t.co/k8xpSlEM0n
  • Join @MartinSEssex at 5:30 EST/9:30 GMT for a webinar on trading sentiment. Register here: https://t.co/CX9djlHnWK https://t.co/DHjcgvlboC
  • 🇪🇸 Balance of Trade (AUG) Actual: €-3.9B Previous: €-1.60B https://www.dailyfx.com/economic-calendar#2021-10-19
  • 🇵🇱 Employment Growth YoY (SEP) Actual: 0.6% Expected: 0.6% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-10-19
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.40%, while traders in USD/JPY are at opposite extremes with 76.25%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/U1taXgNx2T
  • Heads Up:🇪🇸 Balance of Trade (AUG) due at 08:00 GMT (15min) Previous: €-1.60B https://www.dailyfx.com/economic-calendar#2021-10-19
A Succesful Spanish Bond Sale Reverses Earlier Euro Declines

A Succesful Spanish Bond Sale Reverses Earlier Euro Declines

Benjamin Spier, Technical Strategist

The EU summit starts today and traders continue to look for comments about Spain, Greece, and the possible banking union as early indicators of the results of the 2-day meet. We heard yesterday that the Troika concluded talks with Greece and an agreement could be announced within days.

German Chancellor Angela Merkel spoke to the Bundestag at the beginning of today’s European session, and in her comments she made clear that she wants Greece to stand by their commitments. She criticized Greece saying that too many reforms go too slowly and that much is changing at a Snail’s pace. She expects PM Samaras to deliver the Troika update to the summit.

Concerning other major issues, Merkel said that a Spain bailout decision is up to Spain, but the ESM rules will apply to any Spain bailout. She also said that only labor market and structural reforms would help. Finally, she said that banking supervision isn’t sufficient, and that the EU needs the power to intervene in national budgets. As Germany is the biggest economy in the Euro-zone, and therefore a main supplier of the ESM fund, the final suggestion could mean more German say over its neighbors’ fiscal policies. The Euro declined following the Greek comments, and EURUSD temporarily fell below 1.3100.

The biggest news of the day was the UK retail sales numbers. Retail sales increased by an unexpected 0.6% in September, which drove Sterling up to 1.6150 against the US Dollar, and may have been the reason that Euro climbed back above 1.3100 and erased earlier declines.

Also reported today, the Swiss trade balance for September was reported at 2.01 billion Francs, as exports increased by an unexpected 2.6%.

The Euro rose further above 1.3100 when Spain reported a bond sale today for 4.61 billion Euros, beating a maximum target of 4.5 billion Euros. 10-year bonds were sold for a 4.458% yield versus 5.666% on September 20. The Ministry of Economy reported that Spain has sold 94.4% of planned bond issuance in 2012. Spain also reported that 10.5% of bank loans were bad in August, up from 10.1% in July.

Finally, the Greek news site Ekathimerini reported that Spiegel wrote that the decision to grant Greece a 130 billion Euro bailout by the end of November has already been decided. However, there was no Euro activity to support the report.

EURUSD could now see resistance at 1.3171, by the 6-month high. Reports from the EU summit or any updates about a possible Greece or Spain bailout could affect trading.

EURUSD 1-hour: October 18, 2012

A_Succesful_Spanish_Bond_Sale_Reverses_Earlier_Euro_Declines_body_eurusd_daily_chart.png, A Succesful Spanish Bond Sale Reverses Earlier Euro Declines

--- Written by Benjamin Spier, DailyFX Research

“Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.”

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES