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- A negative picture for the EUR after the Catalan referendum and the German elections
A negative picture for the EUR after the Catalan referendum and the German elections
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Loading...The euro does not seem an attractive option in the short term, given the political uncertainty in regions like northeastern Spain. The Spanish situation is still too flexible to predict in more detail the disaster the Spanish government will face.
The common currency is -0.21% lower than the beginning of the day, with traders worried about the strong outcome of the independence referendum. Spain is the fourth largest economy in the eurozone and the region contributes 19% of the country's total GDP.
According to Catalan authorities, 90% of people voted in favor of independence. However, the Spanish government considers the referendum to be illegal, resulting in 800 people suffering.
On the other hand, rumors about the new Fed chairman have supported the dollar, and weak election results in Germany still have a negative impact on the euro. Merkel is still negotiating with potential coalition partners, but experts say it is very unlikely that we will see a ready-made government by the end of the year.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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