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.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a Account Now