We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Bearish
Bitcoin
Bullish
More View more
Real Time News
  • RT @IGTV: #BankofEngland ready to cut rates? Strong #PMI data may steer it away from a rate cut as @JMcQueenFX from @DailyFX tells @JeremyN…
  • Heads Up:🇪🇺 EUR WEF: Lagarde, Zhu, Mnuchin, Scholz, Georgieva, Kuroda, Javid due at 10:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-01-24
  • OPEC is continuing to discuss production cut extension to the end of the year, according to Tass
  • ECB's Knot says inflation target needs to be clarified, adds that current concept is not easy to communicate $EUR
  • OPEC is unlikely to ease production cuts in March as the market is still quite bearish, according to Tass
  • Hey traders! Join Senior Strategist @CVecchioFX January 24th 9AM EST/ 4:00PM GMT for a live discussion on US-China #tradewar: How FX markets will respond the the phase two deal. Only on Facebook and Twitter live! https://t.co/0nfLRtsWBk
  • LIVE IN 30 MIN: Currency Strategist @PaulRobinsonFX runs through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market here - https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917720
  • IHS Markit "It seems likely that the rise in the PMI kills off the prospect of an imminent rate cut by the Bank of England" Survey indicates GDP rising 0.2% https://t.co/1kpZX9yTZi
  • Yen May Fall as Markets Cheer PMI Data, Backdrop Still Tense - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/01/24/Yen-May-Fall-as-Markets-Cheer-PMI-Data-Backdrop-Still-Tense.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #PMI #JPY
  • 🇬🇧 GBP Markit UK PMI Manufacturing s.a. (JAN P), Actual: 49.8 Expected: 48.7 Previous: 47.5 https://www.dailyfx.com/economic-calendar#2020-01-24
Anti-EU Sentiment in Brexit to Hang Over Weekend Spanish Election

Anti-EU Sentiment in Brexit to Hang Over Weekend Spanish Election

2016-06-25 04:43:00
Daniel Dubrovsky, Analyst
Share:

Talking Points

  • Spain will be conducting its second general election in six months over the weekend
  • The Podemos party is viewed as a EU stability threat for its anti-austerity campaign
  • The Brexit vote could give more support for eurosceptic parties

Having trouble trading in such volatile market conditions? This may be why.

In December 2015, Spain conducted a general election. The outcome saw the People’s Party (PP) lose its majority and subsequently slow political progress. Prime Minister Rajoy’s campaign failed to secure the 176 seat threshold needed for a ruling majority in the 350-member parliament. In addition to the Euro gapping lower across the board following the results, Spain’s parliament was left fragmented and a new election was called to be held on Sunday the 26th, 2016.

The timing of this event so happens to fall in the aftermath of a United Kingdom referendum vote in which the country decided to leave the European Union. This is the first member to ever leave the European Union since its inception, though last year’s “Grexit” situation - in which the anti-austerity Syriza party rose to power in Greece and nearly fulfilled its campaign to quit the EU - came close. Since then, there has been a rise in Eurosceptic sentiment within Spain and throughout Europe.

Known as Podemos, the left-wing political party considers its mission is to address economic malaise by renegotiating austerity measures. In December, Podemos ended up with 69 electoral seats in parliament while the People’s Party had 123. Leading up to this year’s election, the anti-EU party merged with several other factions forming the Unidos Podemos alliance. According to The Economist, Podemos will overtake the Socialist party to become the main force on the Spanish left if polls are correct.

Now that the United Kingdom has taken its first step in breaking away from the European Union, concern will build that more anti-EU campaigns will gain traction. As Currency Strategist Ilya Spivak pointed out, Brexit’s success may embolden Eurosceptic forces elsewhere such as in Spain and France. Much like last time, the rising threat of a leftist coalition in Spain could lead to further austerity uncertainties down the road for the EU’s now fourth largest economy (fifth if the outgoing U.K. were included).

Anti-EU Sentiment in Brexit to Hang Over Weekend Spanish Election

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.