Home > Uncategorized > June 11 – Post 100B EUR Spanish Bailout Announcement -Forex Trade Update

June 11 – Post 100B EUR Spanish Bailout Announcement -Forex Trade Update

ForexTradeGains.com
FX Trading Update for June 11th

Spain’s Prime Minister Mariano Rajoy

Euro gapped higher on the first trading day of the week in the wake of 100B rescue deal for Spanish banks negotiated over the week-end.

The Spanish bank rescue deal provided much needed boost for risk FX, but it left many questions open as details of the package were scarce.

As many analysts have pointed out it left the issues of interest rates and source of funding still open, but most importantly the deal did not clarify if the rescue package would be senior to the Spanish sovereign which in turn could force Spain out of the credit markets.

Technicals

The pair raced to a high of 1.2667 in early Asian trade before running into resistance and is so often the case of with weekend gaps, the flows reversed in Europe with EUR/USD dipping back below 1.2600 as profit taking kicked in.

Related  News:

THE SPANISH BAILOUT: A GUIDE FOR THE PERPLEXED

Brief:  What does Spain Get and Possible Bailout Payback b

What could be next for Italy in light of  Spanish Bailout?

Additional Reading:

A Short History of Spain (Classic Reprint)

Spain on the Rocks?: Spain in 2012: An Economic & Political Analysis and Survey of Analysts

Profiting With Forex: The Most Effective Tools and Techniques for Trading Currencies

Apple iPad MD330LL/A (64GB, Wi-Fi, White) NEWEST MODEL

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