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
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- Italy, Spain to Shun Aid Unless Yields Jump, Polillo Says | OANDA Forex Blog
- EU in Talks Over Spanish Rescue Plan | OANDA Forex Blog
- Euro stung by weak data, gives USD a bit of reprieve | OANDA Forex Blog
- UK Housing Market Falls Slightly in August | OANDA Forex Blog
- Spain Raises 4.8 billion euros at 5.66 percent yield | OANDA Forex Blog
- The 3 Problems Global Economic Growth is Facing | OANDA Forex Blog
- EU Barroso Europe Needs a New Direction | OANDA Forex Blog
- Most Greeks reject austerity attached to bailout aid, but support euro: survey | OANDA Forex Blog
- German Central Banker Weidmann Will not Back Down | OANDA Forex Blog
- European Banks Failed to Deleverage Aided by ECB Loans | OANDA Forex Blog
- Oil prices dive in late-session trade | OANDA Forex Blog
- EUR Event Premium To Remain Intact? | OANDA Forex Blog
- 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)
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