A nice steady grind higher in recent sessions for the euro. Slow, but steady. 1.3030 acted as resistance for a time, as did 1.3050, both now broken. Small buyers are seen on dips to the old highs near 1.3050. Sellers seen toward 1.3080/85 and again toward 1.3100. 1.3140 is the big prize for the bulls. A break will trigger fresh short-covering and a test of exotic options truck at 1.3200.
Upbeat Chinese PMI is the risk-on catalyst du jour, while the Spanish bank bailout request is exceedingly old news. The restructuring of the sector has been underway for months. The details of the Greek debt buyback have been well received, helping lower Spanish benchmark yields 15 bp all the way down to 5.15% and Italian yileds 12 bp to 4.39%.
