Euro Below 1.21 as Concerns for a Major Spanish Bailout Mounts

It’s been two years since the euro has hit levels seen today. Concerns about the need for a major Spanish bailout are on the rise, and that is dragging down the euro. Spain would be the fourth eurozone country to ask for a major bailout — an indication that the sovereign debt crisis is still not under control.

Euro is falling as concerns about what’s next for the eurozone plague the 17-nation currency. In Spain, several regions have asked for rescue funds from the federal government, indicating that things are not going well. Spanish bond yields on 10-year notes have surged to more than 7.5 per cent. Worries are that Spain is on the verge of needing a serious bailout, beyond the banking bailout the Eurogroup just approved.

In the midst of concerns about Spain, worries about Greece are on the rise again. International leaders are headed to Athens to evaluate the austerity measures, and decide whether or not the country “deserves” more aid. The news, along with the Spanish concerns, has Forex traders and others around the world concerned about what’s next for the eurozone.

At 13:22 GMT EUR/USD is down to 1.2091 from the open at 1.2118. EUR/GBP is up to 0.7799 from the open at 0.7758. EUR/JPY is down to 94.6140 from the open at 95.0950.

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