FXstreet.com (Barcelona) – Today, the euro will likely take its cue from the reaction of Spanish bonds, although a “German constitutional court hearing on the legality of the ESM is also likely to be a focus of attention once proceedings get underway around 0800 GMT,” noted Gareth Berry, FX Strategist at UBS. It is unclear at this stage how soon a verdict can be expected, although Germany’s president has refused to sign the ESM into law until the Court gives its seal of approval. Until then, “the ESM cannot become operational, which means the EFSF will remain Europe’s only bailout facility for some time to come,” he added.
Fore the Euro, “Our support focus is on 1.2152, a break under this level would expose 1.2000. Near-term resistance is at 1.2402.” He concluded.
