Breath easy - Its bearable hit by Spain to EURO

Over the weekend the Bank of Spain intervened along with four other Spanish banks bailed out Cajasur to consolidate with the fifth largest group of the nation. These banks composedly submitted a proposal to Central bank of Spain to merge their business with them.

This news leads the EURO currency in low phase after going to a high of 1.25 in the past week. IMF had given a report on Spain yesterday for telling about the weak points. The report clarifies about the debt condition of Spain along with the productivity growth, huge private sector and weak competitiveness.

Forex market risk aversion is eventually trying to collect the momentum in bulk yesterday with the threat of Spain banking concerns along with the embedded impact of financial crisis problem of euro zone member countries. Investors are much worried after the fall of Korean currency drops against Dollar.

This impacts the Asian stock market to drop-down after the USD/KRW reaches below 1200 points for the first time after 2008 low. In today’s Forex market fall is shown in Japanese Nikkie that falls to 3.06 points and Asia Pacific Index reaches to 3 percent low.

Crude oil breaches to 69 level where as an upgrade is seen in the USD index of 86.8 point. Instead of this Japanese Yen seems to be strongest currency than Dollar even though currency pair USD/JPY falls below the 90 level.

It was anticipated in the market that if the sentiments remains worse for the coming days for the EURO currency then it can be a benefit for the USD and Yen as they reach to a high level against all the major currencies of the Forex market.

Overall it is said by observing the current situation of the market that the main focus of the Forex market is captured totally by the Spain banking concerns. Lets see what will be the next step that can be taken in the market for controlling the worsen situation of EURO currency.