Forex Marketz Daily Forex News – Fully Markets Update
This morning, during Asian trade hours, the euro was, shockingly, steady as the week kicked off. Yesterday, the Catalonia region in Spain voted to cede from Spain amid widespread violence.
The EUR/USD Forex market did fall, but by less than 0.01 cents. The euro then recovered and is once again back above 1.18. There was thin volume this morning as financial institutions in China and Australia were closed for holidays. This could account for the tepid response this morning, as well.
Reports out of Spain showed that the Spanish police used batons and rubber bullets to try to stop the independence referendum. The government regards this use of force as unconstitutional and illegal. However, Catalan separatists are claiming a huge win for their side. This brings up the possibility of them now leaving both Madrid and the European Union. This creates a huge problem in calming the tensions. Spain is the European Union’s (EU) fifth largest national economy. Spain will move up to fourth place following the United Kingdom’s departure. Catalonia accounts for about twenty percent of the total economic output of Spain.
Asian Investors Focus less on the Euro and More on China
Investors, in Asia, may have been more focused on Saturday’s positive economic data out of China. The official Chinese manufacturing purchasing managers index, or PMI, rose at its strongest pace since 2012 for the month of September. The PMI printed at 52.4 from 51.7 in August. New orders also came in above output. These numbers preceded the news of record South Korean exports.
The EUR/USD has been supported, as of late, over the recent months. The Eurozone economy has shown signs of improvement. However, it has been weakened a bit, as of late, thanks to the US dollar. Recent comments, out of the United States, shows that the Federal Reserve will likely increase interest rates in December.
