Flash: Portuguese and Spanish concerns not reflected in EUR – Investec

FXstreet.com (New York) - With sentiment very much in the USD’s favor following events last week, the greenback was sold off as result, losing half a cent against GBP and the EUR, although risk assets preformed well on the back of a sharp fall in US interest rates, notes Lee McDarby, Corporate Treasury at Investec.

“With the market still focused on QE tapering, the recent CPI releases in the US are viewed as significant in order to justify tapering as early as September. Elsewhere, the Eurozone is shadowed by political concerns emanating from Spain and Portugal however this is not reflected in the currency markets as the Euro continues to trade at sub 1.1600 against the pound and above 1.3000 against the dollar.” McDarby adds.