EUR – Spanish Bonds Strong, But Why?

European economic data remained light on Friday and the EUR was able to push higher again. The Spanish Bonds auction went well closing out the week, which may have helped investor sentiment and European equities continued to gain. However, plenty of questions persist regarding the depth of problems within the financial crisis even if they seem to have been pushed to the side for the time being. Two issues of interest for investors should be what impact the European Stress Test on its banking industries will produce and just how exactly the Spanish Bond auction ran so effectively. Investors are asking if the ECB was a big participant in the buying of bonds, but as of yet no clear answers have been given. There will be no major economic data today, tomorrow the German Ifo Business Climate reading will released. The EUR has had a good run and traders may try to continue to test its short term strong range.

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