EUR May Fall Before Spanish Bank Audit; 1.2650 Floor

The EUR may fall as investors are concerned that the upcoming release of a preliminary audit on Spanish banks could show that the recent bailout fund for the nation won't be enough to save all of the nation's troubled banks, says a senior dealer at a major bank in Tokyo. "Our bank's internal research shows Spanish banks have a huge amount of bad mortgage loans and real estate, so it's possible that the audit will negatively surprise the market," he says, adding any market impact from Wednesday's FOMC outcome are already gone. The USD/JPY is at 79.50; he tips a 79.00-79.60 range for the session. The EUR/USD is at 1.2692; he tips a 1.2650-1.2740 band. The EUR/JPY is at 100.90; he tips a 100.40-101.20 band.

EUR May Fall Before Spanish Bank Audit; 1.2650 Floor

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