Spanish 10-year bond yields are hovering about 6 percent, prompting analysts to believe the euro is slated to barrel toward further challenges while the sovereign debt crisis continues attacking banks, markets and public finance systems in the region. Germany, owner of the euro zone's largest economic system, saw its bond auction deliver less-than-stellar results.
"I will use small gains (in the 17-nation euro) to get better levels to sell," currency strategy head Jeremy Stretch with CIBC told Reuters. "If Spanish yields go back above 6 percent then it would favor a break-out of the range to the downside."
Analysts are increasingly concerned about the progressive rise in bond yields in Spain, which is amplified all the more in the fallout of the March jobs report in the U.S. Analysts were disappointed with the lower-than-expected amount of jobs that were created.