Eurozone issues are coming back under the spotlight ahead of the long weekend. The spread between Spanish and German 10-year yields are testing the wides of this year and European equities, particularly the Spanish Ibex index are breaking lower. FX markets are responding accordingly, with near-term downside breaks in the EUR being seen against USD, GBP and JPY. A move below our initial downside targets would suggest that a more important move lower is in the offing for the days and weeks ahead.
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Barclays Capital