Euro is higher right now, gaining across the board, even with the latest portugal concerns. Traders are looking for yield, and that is helping the euro right now. But there are whispers that the breakup trade could be back on the table.
Right now, investors and traders are looking for yield. Spanish and Italian bonds are in demand, and high beta currencies are gaining. This comes even as concerns about Portugal once again take center stage.
Over the weekend, a Portuguese court ruled that the wage and pension cuts to workers in the public sector are unlawful, and that has concerns about a possible problem with Portugal’s finances in focus again. A shortfall in the budget is expected, and the company might ask for a second bailout. In the meantime, calls for the resignation of PM Pedro Passos Coelho are on the rise.
Euro is higher right now against its major counterparts, but there is speculation that concerns about the periphery could pull the 17-nation currency down. The breakup trade is back on the table as Forex traders wonder if the region can hold it together.
At 14:20 GMT EUR/USD is up to 1.3023 from the open at 1.2974. EUR/GBP is up to 0.8503 from the open at 0.8473. EUR/JPY is up to 128.3315 from the open at 127.4150.
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