- Efforts of Spain govt, regions not fully reflected by S&P
- Spain will not change its’ deficit targets after IMF says should be given more time (they mean business!!!)
- S&P cut doesn’t reflect Spain’s current market context
- S&P cut in contrast with better market views
- Spain still studying a possible bailout request
- Spain borrowing costs inflated by euro doubts
EUR/USD has seen a sharp rally back over 1.2900, presently at 1.2920.
Talk of macro fund stops being tripped through 1.2900 accelerating the move. All in all a very skittish market at present.
