The market is short of EUR so any news which isn’t obviously bad, will probably encourage some short covering. The change of government in Spain is one of these pieces of news which is tempting some shorts to book profits. The lack of agreement in the US on a grand budget plan is putting some focus back on the US situation and also encouraging EUR/USD shorts to cover.
Movements remain rather muted so far, so no reason to get overly excited by the first 30 pip move of the week.
