Spanish debt gets hammered for the fist time in weeks. Euro dips but then recovers, lead higher by EUR/CHF, of all things.
Why has EUR/CHF suddenly decided to move? Ostensibly because one of the cantonal banks threatened small savers with negative rates on Thursday. That, and the broad euro rally on Draghi’s about-face on the need for near-term rate cuts.
EUR/USD is ending the day only about a dozen pips from the highs. The only news of note late in the session were some modest tinkering by S&P with the outlooks of Luxembourg, Finland and the Netherlands. All affirmations with outlook upgrades to Lux and Finland to stable from negative.
Perhaps the biggest market mover is the man who has yet to speak, Ben Bernanke. The market looks to be selling some greenbacks in anticipation of him playing down the more hawkish elements of his FOMC . That’s always a pretty safe bet.
