Week in FX Europe-European Debt Auctions Take Center Stage

Gathering more attention than usual will be next week’s Spanish bond auction. It’s appearing just ahead of the Italian general election and ahead of Spanish data that may suggest that the country missed last year’s deficit targets. France also appears in the debt market crosshairs. A double French auction appearing on the same day next Thursday, will end up being a true test of investor confidence in two of the largest economies in the Euro-zone.

Despite having raised almost +20% of this years bond needs, Spain will still be required to issue debt at a brisk pace. Its total 2013 debt issuance target is around +EUR122b. Even though Spain has become a periphery worry, France, the bigger of the two economies, is now beginning to cause more of a concern due to its “cyclical and structural mix.” The EUR will find fault if spreads begin to widen again.

 

WEEK AHEAD

* AUD RBA Policy Meeting Minutes
* EUR German ZEW Survey
* EUR German Consumer Price Index
* GBP Bank of England Minutes
* GBP Jobless Claims Change
* USD Fed Releases Minutes
* USD Consumer Price Index
* EUR German Gross Domestic Product
* CAD Consumer Price Index

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Dean Popplewell

Dean Popplewell

Vice-President of Currency Analysis and Research at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell