Slow and steady does it! EUR/USD continued to crawl up the charts as it struggled to hold on to the 1.2300 handle. Unfortunately, the pair was unable to do so as it closed 17 pips below the psychological level. Read on to find out what happened and what’s in store for the euro today.
Euro zone debt problems seemed to have taken a backseat for a while now, but it seems that these are back to haunt the markets yet again! The recent Spanish bond auction revealed that yields spiked close to the 7% threshold again, despite the approved bank bailout plan. This implies that investors are nowhere near confident about the proposed solutions for the country as they still require higher returns on their Spanish debt holdings.
Only the current account balance is set for release from the euro zone today, but this report isn’t expected to have a huge impact on euro price action. Their current account surplus is expected to widen from 4.6 billion EUR to 5.3 billion EUR in May but, if the actual figure misses the mark, the euro could experience a bit of downward pressure.
As always, keep your eyes and ears peeled for any updates regarding the euro zone debt situation. Word through the forex grapevine is that Austria might be due for a debt rating downgrade, which could be negative for the euro if it pushes through. Stay on your toes!