Home Will the EU Bail Out Spanish Banks? EUR/USD Jumps
Forex News Today: Daily Trading News

Will the EU Bail Out Spanish Banks? EUR/USD Jumps

A report that the European permanent bailout fund (ESM) will be able to recapitalize banks such as Bankia is lifting the euro from the gutter.

EUR/USD jumped from 1.2430 to 1.2470. 1.25 is still looming above.

EUR USD Small Recovery May 30 2012
EUR USD Small Recovery - Click image to enlarge

It fell earlier to the abyss on rising yields for Spain and an awful Italian auction. Spanish yields got too close to the scary 7%. One of the reasons for Spain’s pain is the nationalization of Bankia -injecting an additional 19 billion euros for weighs on the sovereign.

Getting ESM funds is a great relief for Spain, assuming it is correct.

For more, see the EUR/USD forecast.

This move could certainly be a squeeze of shorts after the recent fall – an opportunity to cover a drop.

EUR/USD is now stabilizing around 1.2450- 1.2460.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.