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FXstreet.com (Córdoba) - Market sentiment is mixed at the start of the week as markets continue to digest the announcements from the European Leaders' Summit and ahead of some key data and events in the coming days, according to the Wells Fargo team. "In contrast to a positive mood in European equities and a further fall in the Spanish and Italian bond yields, the euro is lower".

"Part of this divergence could probably be attributed to the anticipation of the ECB policy announcement later this week, where a rate cut is generally expected", they say. "Markets also took note of comments by the Finnish government which said it opposed secondary bond purchases by Europe's permanent financial aid fund".

With policy easing likely from the ECB and the Bank of England, and relatively modest expectations for the US June non-farm payrolls report, "our bias is for some further improvement in risk sentiment and a softer US dollar this week", Wells Fargo analysts conclude.

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