Week in FX Europe – Greece Selling Real Estate as Spain Denies Bailout Request

The last two weeks have been good for Spain. So good in fact that they are taking their time in sending a formal bailout request to the ECB. Mario Draghi’s committment to the euro and unlimited bond-buying program made this week’s Spanish bond auction very successful with yields of 5.666%. This has helped Mariano Rajoy delay a bailout request, although there are also political factors to consider as the region of Galicia is holding elections on October 21st and the president’s party could suffer if the unpopular bailout request is made before elections.

Greek PM Samaras meet with Italian PM Monti and they both came to the conclusion that the eurozone must be preserved. Samaras faces an uphill battle outside and inside Greece. The troika has not shown much flexibility to Samara’s requests. Greek coalition parties have not agreed on the details of the 11.5 billion euro austerity package. In a surprising move it seems the Greek consulate in London is up for sale as no stone will be left unturned to reach the needed cuts.

Europe

 

 
 

ASIA Week in FX

AMERICAS Week in FX

WEEK AHEAD

  • JPY BOJ Minutes of Aug. 8–9 Meeting to Be Released
  • EUR German Consumer Price Index (YoY)
  • EUR German Consumer Price Index – EU Harmonised (YoY)
  • EUR German Unemployment Change
  • GBP Gross Domestic Product (QoQ)
  • GBP Gross Domestic Product (YoY)
  • USD Gross Domestic Product Price Index
  • USD Gross Domestic Product (Annualized)
  • USD Durable Goods Orders
  • USD Personal Consumption Expenditure Core (YoY)
  • CAD Gross Domestic Product (YoY)

 

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.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza