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Week in FX EUROPE Aug 12-17
It has been an uninspiring jobbing week for the single currency. The EUR has been confined to within a tight two cent trading range. Volatility blips have been fueled by strong rhetoric from Merkel, very much backing earlier Draghi comments, a think tank suggesting that a Spanish bond buy strategy was imminent and mixed global data. Overall, it seems that the market remains unequivocally bearish on the EUR, where a Treaty-consistent solution to Spain’s economic crisis has yet to be discovered. It looks very much like the currency is gradually taking over from the USD as the funding currency of choice for long ... (full story)