Analysis details (07:22)
- It is worth keeping an eye on 450bps mark, which is where the LCH Clearnet begins to review margin requirements.
- Also, the recent bond spread widening was prompted by reports that Spain is unlikely to seek ESM aid this year. Moody's decision to affirm Spain's credit rating was recently affirmed by Moody's was contingent on Spain implementing fiscal reforms and the ECB stepping in to buy bonds of peripheral Eurozone countries.
- Widening in credit and bond yield spreads continues to weigh on EUR/USD, major support line seen at the 100DMA line at 1.2608.
08 Nov 2012 - 05:29 - Forex - Source: RANsquawk
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