Spanish Yields Rise

Published 05/29/2012, 02:22 AM
Updated 04/25/2018, 04:40 AM
USD/CHF
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The euro fell near its two-year low against the dollar on Tuesday on concerns about the cost of shoring up Spanish banking system pushed Spanish debt yields to around 6.5%. Pessimism over Greece is somewhat receding, however, worries over Spain are growing and markets are watching whether the Spanish bond yield will hit the 7% mark. Looking at past history, 7% yields on 10-year bonds are unsustainable since the three euro zone countries that asked for bailouts all did after their bond yields hit 7%.
Technical Analysis Chart
USD/CHF

The pair is testing its 0.9605 resistance level which happens to be a crucial level. If the pair breaks and closed above this level on the four hour chart, then expected the upside bias trend resume its course towards the 0.9770 level.
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