(ES) Spain Budget Min Montoro commented that Spain could not be bailed out and that neither France nor Germany had asked Spain to seek an international bailout.
(ES) Spain PM Rajoy: Spain is in an extremely difficult situation; Europe must help with liquidity issues.
How to interpret these headlines?
Spanish Bailout is once again on the front and center of the news, with G7 emergency conference call scheduled to deal with this topic almost exclusively, although some may argue that Greece is also part of the discussion, but in reality there is really nothing to talk about on Greece until after the election on June 17.
Therefore, as expected, the focus was on Spain and the potential of a bailout… And once again I like to reiterate what I’ve said time and time again, that a bad news is not as bad for the market than uncertainty… this back and forth dance of Spain and Germany on the subject of a Spanish bailout is eroding market confidence in the Euro. Traders rather invest in USD, knowing that the recovery is slow, than to invest in Euro, not knowing if the Euro is going to collapse… My view: SELL EURUSD on rally.
Spanish Bailout: Market Reaction To Spanish Resistance
June 5, 2012 by Leave a Comment