Markets have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
Meanwhile, ratings agency Moody’s said Tuesday it was still reviewing Spain's finances for a possible credit downgrade. Moody’s said in August its review on Spain’s Baa3 rating would continue through the end of September. A move below Baa3 would drop Spain’s debt into junk.
Early in the morning today, data out of the world second largest economy showed that the Chinese services industries expanded at the weakest pace since at least March 2011.
The market reaction to these disappointing publication were relatively flat as Market participants started to look ahead to Friday’s crucial U.S. non-farm payrolls data, as well as the European Central Bank’s forthcoming policy meeting on Thursday.
Further on today, the preliminary Job report, ADP-Automatic Data Processing is to releases its September employment report at 12:30GMT Economists in a Reuter’s survey expect 143,000 jobs were created in September versus 201,000 in August.
The US ISM non-manufacturing index will go out soon after at 14:00GMT. A reading of 53.2 is expected, versus 53.7 in August.
EUR/USD the Euro Zone Retail sales rose modestly in August. In a report, retail sales rose by a seasonally adjusted 0.1% in August, compared to expectations for a 0.1% decline.
Retail sales for July were also revised up to a 0.1% gain from a previously reported drop of 0.2%.Year-over-year, retail sales in the euro zone fell at an annualized rate of 1.3% in August, compared to expectations for a 1.9% decline, after falling at a revised rate of 1.4% in July.
Following this release, the block currency moved higher from as low 1.2882 to 1.2931 at the moment of writing these lines.
The Euro is expecting to move directionless ahead of the ECB meeting tomorrow and ahead of the Crucial US NFP Job report.