Spanish police used rubber bullets to disrupt an independence vote in Catalonia on Sunday, leaving hundreds of citizens injured while presenting Madrid with a huge challenge as its seeks to ease tensions in the wealthy north-eastern region. Preliminary results showed that of the 2.20 million ballots counted, 90% were in favour of a split. Spanish Prime Minister Mariano Rajoy has denounced the vote as illegitimate.
Meanwhile, the dollar was boosted by speculation surrounding US President Donald Trump potential Federal Reserve Chair picks to succeed Janet Yellen. Former Fed Governor Kevin Warsh has been circulating as a potential front-runner for the position. Warsh is widely-considered to be more hawkish than current head Janet Yellen. EURUSD is trading around 1.1760 early Monday, with 1.1750 representing the immediate downside support. Considering the short-term trend has turned bearish, a breach of this level could see selling pressure intensify.
Euro Ruffled by Spanish Uncertainty
Daily Analysis - 02/10/2017