April 11, 2012
DJ euro got booed off the stage yesterday, as the shared currency simply couldn’t get its groove on. EUR/USD fell 32 pips to finish at 1.3081, while EUR/JPY simply tanked, dropping 152 pips to close at 105.51.
So what caused the euro’s demise today?
Risk aversion took over the markets like a Kanye West single, as Spanish yields on 10-year bonds soared to above 6%. This bought yields to its highest level since late last year. Take note that many investors consider Spain to be next in line for a bailout and rising yields only give credence to those fears.
In other news, we got mixed economic data, as French industrial production figures came in better-than-expected, while a report showed that investor confidence fell to its lowest level in three months.
French industrial production rose 0.3% last February, which was slightly higher than the projected 0.2%. Unfortunately, the Sentix investor confidence index printed at -14.7, which was way worse than expected -7.7 figure. This was also a reversal from the recent trend that indicated that consumer confidence was slowing improving.
We don’t have any data lined up for today, but keep an eye out for those bond auctions. If we start to see yields on the rise again, we could be in for another sell-off!
Last edited by PipDiddy; 04-11-2012 at 03:48 AM.
"The only cable I watch is the pound baby."