What to watch for when Catalan parliament votes later today - Credit Agricole

Euro: Ahead of the Catalan vote: possible reactions - Credit Agricole

Credit Agricole CIB FX Strategy Research discusses the potential reaction for the EUR to today's Catalan vote at 6pm BST (1PM EDT).

"Today at 6PM the Catalan parliament is expected to vote on whether to support a Unilateral Declaration of Independence (UDI) following the independence referendum that took place a week ago.

1- A majority in favour of UDI could trigger a suspension of the Catalan autonomy by the central government in Madrid and likely lead to further escalation in the political tensions. Such an outcome could leave EUR vulnerable. This is not the only possible outcome, however

2- We expect EUR to trade higher if there is no support for an UDI following the vote in the Catalan parliament later today. Abating political risks in the Eurozone could allow investors to focus on the improving Eurozone data," CACIB argues.

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