- Eurogroup approves Spanish bailout
- EU’s Rehn: Spain expected to correct deficit by 2014
- Spain lowers GDP forecasts
- Valencia asks to tap regional bailout fund
- Dovish Fed chatter
- ECB says Greek debt ineligible as collateral
- Canada CPI 1.5% y/y vs 1.7% exp
- Spanish yields blow out to record highs
- Spanish-German spreads hit record wide
- Egan-Jones downgrades Spain to CC+ from CCC+
- Spanish stocks fall 5.8%, the most in two years
- EUR/USD hits lowest since 2010
- JPY leads, EUR lags
One headline after another eroded faith in Spain and undermined the euro. It was a one-way street, falling below 1.2225 as the bailout was finalized. Eventually the barrier at 1.2150 gave out but it was short trip down to 1.2144 — the lowest since 2010. EUR/USD rebounded and coasted through the rest of the session just above 1.2150.
Cable followed a similar path but continued to make fresh lows after the European close, down to 1.5612.
The commodity bloc slumped but not badly, falling 20-40 pips from yesterday’s levels.
Have a great weekend.