Forex: EUR/USD weakens after Spanish bond auction

Forex: EUR/USD weakens after Spanish bond auction Tue, Apr 24 2012, 09:20 GMT | FXstreet.com FXstreet.com (Barcelona) - Spanish, Dutch and Italian bond auctions have been driving the European morning sentiment, sending the EUR/USD as high as 1.3184. The Spanish government sold €760 M of 3-month bonds at yields of 0.634% (vs previous 0.381%) and €1.21 B of 6-month bonds at yields of 1.580% (vs previous 0.836%). Despite much higher yields, bid to cover ratio improved on the 3-month contract. Since the results came out, the EUR/USD has been ranging at 1.3160/70. “Still weak picture on a daily chart sees 1.3200/23 zone as strong barriers, as the price action remains trapped between 55 day MA on the upside and 90 day MA on the downside, currently at 1.3200 and 1.3113, respectively”, wrote Windsor Brokers analyst Slobodan Drvenica.