Monday, 17 September 2012

Euro Consolidates, but Still Faces Headline Risk


The euro appears to be in consolidation mode after another batch of big gains following the Fed's latest round of dollar-weakening bond-buying, says Vassili Serebriakov of Wells Fargo. But just because there is a lull in trading, the common currency is still prone to headline risk -- particularly over whether Spain will request a broad bailout. "It seems like the market is a little anxious about whether Spain will request aid," Serebriakov says. Despite the consolidation Monday and continued headline risk, the bias is still toward a euro rally, he adds. The euro is at $1.3118 from $1.3132 late Friday, according to EBS via CQG.

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