Forex Flash: Scope for further gains in the USD and JPY - Wells Fargo

FXstreet.com (Córdoba) - Global risk sentiment is firmly in an "off" mode at the start of the week according to Wells Fargo team as even with relatively light news flow, today's moves are significant in several markets.

"Spanish ten-year bond yields reached a new record high above 7.50%, while European equities are down 2-3%, prompting the Spanish authorities to ban short-selling of all stocks for three months", Wells Fargo says. "Concerns over a Greek euro exit have also resurfaced amid reports that the IMF may stop providing further financial aid and with some strongly-worded comments from Germany's Economy Minister Roesler".

"While the euro is down to a new two-year low, other European currencies are seeing even larger declines including the British pound and Swedish krona", they add. "Current market conditions suggest scope for further gains in the US dollar and Japanese yen, while this week's relatively busy data calendar should further additional insight onto the state of the G4 economies (US, Eurozone, Japan and the UK)".