Forex Flash: EUR in focus following ECOFIN – Investec

FXstreet.com (Barcelona) - With EUR/USD back above 1.3000 and with successful and encouragingly low-yielding Italian bond auctions yesterday morning, Europe remains in focus today. The next troubled member state flogging its wares in the bond market today is Spain with up to €4.0bn of relatively short-dated issuance going under the hammer.

According to Lee McDarby, Investec Corporate Treasury, “If we see a similarly low yield then GBP/EUR could break lower towards 1.17. A range of 1.1450 to 1.1850 has been in play since the sterling free-fall, which we witnessed at the turn of the year. The recent move lower in sterling would suggest that GBP/EUR is more than comfortable in its current range.”

Despite the move lower there are still opportunities for euro buyers whilst we remain close to range highs. The ECOFIN Meeting in Brussels got into full swing at 8am this morning, so look out for headlines from Belgium to also have an influence over the single currency.