Currency Monitor 2012-05-29
May 29, 2012
- EUR remains under pressure as Spain's banking crisis overshadows Greek election
- PM Rajoy calls for the ESM to directly recapitalise banks as Spain looks to shore up Bankia with debt rather than cash
- Spain's bond spread with Germany reaches a record, while yields approach bailout levels
- Commodity currencies struggle, with key China data not till the end of the week
- GBP may return to favour as a haven as BOE comments suggest more QE isn't that close
- YEN stays on 79 as minutes show BOJ say more easing isn't "automatic"; EUR/JPY slips through 100.