Euro Gains on Catalonia Pullback

Euro
  • Euro Gains on Catalonia Pullback

The Euro rose higher on Wednesday after Catalonia pulled back from declaring independence from Spain.

Carles Puigdemont, Catalan leader proposed the parliament suspend the October 1 referendum and await the outcome his meeting with the Spanish government.

“There was a chance Puigdemont would have made a decisive declaration, so now yields are dropping because there is room for negotiation left,” said DZ Bank strategist Christian Lenk.

The Euro jumped to more than two-week high against the broadly weak US dollar which has been under pressure since Trump administration commenced search for the next Federal Reserve Chair. The Euro common currency rose to $1.1843 against the US dollar on Wednesday.

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While the best gain came from Spanish banks’ shares that jumped 4 percent to boost IBEX 35 Index higher. However, the uncertainty remains in the market, with U.S. tax reforms stagnate, Brexit negotiation has no direction yet and still weighing on U.K. new investment and economic growth.

Spanish Prime Minister Mariano Rajoy is due to address the parliament later on Wednesday.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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