The European Commission and the IMF improve their expectations for the Spanish economy. They say that Spain has better control of public deficit, in comparison to other Euro-zone countries.
They expect that the public debt will be 69.7% of GDP in 2011, better than a previous estimate that stood on 73%. The Euro-zone debt to GDP ratio now stands at 86.5%.
This report, on El Pais (Spanish link), doesn’t cheer up Spanish bonds yields, that now climb to 5.17%. The ECB will soon publish the amount of bonds purchased last week, and we’ll get to see if indeed Trichet is the hero that will save the day.
EUR/USD now trades at 1.3287, in the 1.3267 to 1.3334 range. For an outlook on European events and a full technical analysis, see the euro dollar forecast.