Spain Continues To Worry

Their 10 year bonds high this high in afternoon trading, just below the psychological level of 7%, which for those avid market watchers amongst you, will ring a bell as the level both Greece and Italy hit before requiring their government saving bailouts.

Additionally Fitch Ratings published a press release late yesterday afternoon, downgrading 18 Spanish banks’ long-term issuer default ratings and 15 banks’ viability ratings.

In short despite the whopping €100bn banking bailout agreed at the weekends, Spain is still very much in trouble and with the Greek election at the weekend, fears will definitely be focused on a possible Euro breakup.

In other news the UK industrial and manufacturing data out yesterday morning, was further bad news for the recession mired UK economy. There is a relatively quiet day for data releases today, with some European industrial figures this morning, followed by US PPI figures at lunchtime. Also keep an eye out on the German 10 year bond auction this morning – could the market’s be starting to doubt even the Euro’s strongest economy?

Focus on Euro 2012

Greece 1 – Czech Republic 2
Poland 1 – Russia 1

Yesterday saw a couple of good, hard fought games at the European championships, with probably goal of the tournament so far being scored by the Polish captain to draw the tournament co-hosts level, late in their game against Russia. While many currency purchasers may well be shying away from depositing any Euros in Greek banks at the moment, and unfortunately here at Currency Index we can’t trade Rubles, it is worth knowing that we can help with both the Polish Zloty and the Czech Koruna, both of which can currently be bought at around the best rates since 2009, so if you have a requirement in either of these currencies give us a call for some market information and a quote from your dedicated broker.