Euro Falls after Spanish Vote

Friday, 22 December 2017 6:00

The Euro came under pressure against the US Dollar after the independence vote in Spain’s Catalan region showed a win for the separatist movement. The Spanish government had hoped that this election would result in pro-independence parties losing control of that region’s parliament. If that had happened, it could have meant an end to their efforts to break away from Spain. However, after 96% of the votes were counted, members of the Separatist parties looked to win a majority of the seats.

As reported at 10:50 am (JST) in Tokyo, the EUR/USD was trading at $1.18, down 0.18% and extending Thursday’s low of $1.1817. The EUR/GBP was 0.8852 Pence, down 0.15%; the pair had earlier hit a low of 0.88340 Pence.

Euro Still on Track for Weekly Gain

Earlier this week, the Euro had been higher, but the EUR/USD has since been pared down to just a 0.7% gain. Currency strategists say that there is some support at $1.1800 which could limit the common currency’s downside. Analysts point out that the thin liquidity in the market as a result of the upcoming Christmas holiday also has market participants somewhat cautious.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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