- See more at: http://blogtimenow.com/blogging/automatically-redirect-blogger-blog-another-blog-website/#sthash.CpFtWfic.dpuf Traders digest: Barclays- Risk reward for eur longs unfavourbale

Sunday, 30 September 2012

Barclays- Risk reward for eur longs unfavourbale

They say that even if the Spanish news from Budget and bank stress test was positive, there is still a lot of uncertainities sorrounding the euro
They also believe, Scepticism remains on too many fronts. Are the new fiscal deficit targets feasible given the optimistic growth assumptions? Will the elections in Galicia and the Basque Country on 21 October and tension in Catalunya delay the request?

However they add that when Spain formally requests for bailout, eurusd might resume rally towards 1.35000. They expect Spain to request for bailout after October 18th, but in the short the risk reward is unfavorable.

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