Forex Flash: EUR/USD seems immune to crisis in Spain so far – UBS

According to Research Analyst Gareth Berry at UBS, “There was some moderate selling of euro crosses overnight on fears that ECB President Draghi may sound uncomfortable with the euro's strength at the upcoming ECB policy meeting on Thursday, however we're not entirely convinced (given the ECB's historical reluctance to comment on exchange rate levels).

European politicians however are unlikely to be so reticent. Indeed French Finance Minister Moscovi declared over the weekend that the euro may be 'too strong'. “The EUR/USD so far seems relatively immune to signs of a brewing political crisis in Spain, but this should not be taken for granted - especially with Thursday's auction of Spanish sovereign debt looming.” Berry adds.