Spanish recession and EUR/USD signals
In recent Forex trading news, it is clear that all eyes continue to be on the economies of both Spain and Italy. Although the ECB’s intervention into the Spanish sovereign debt crisis initially raised investor sentiment, a subsequent backslide occurred, causing Spanish bond rates to hover near the dangerously high level of 7 percent. If we combine this factor with Spain’s request to be given more time to reach its deficit targets in exchange for further domestic austerity measures, it becomes clear why Forex traders remain wary of the current economic climate within the EU.
This is one of the fundamental reasons why Forex traders expect the EUR/USD to continue to trend lower in the following week. While some could see this as a signal to buy in hopes of a short term rally following a Spanish bond auction on Thursday, others remain skeptical of Spain’s ability, even when given more time, to meet its fiscal requirements.
Furthermore, the prospect of a severe and protracted Spanish recession is becoming more likely according to some. For traders worldwide, the basic sentiment is still negative and the ZEW surveys due out on 17 July are likely to highlight signals of the euro zone’s continued economic fragility.
It’s definitely interesting times ahead for currency traders. So get onboard, and get going with forex trading you too. >>Signup today, with one of the forex brokers we recommend.