Catalonia Puts Independce Declaration On Hold Following President Puigdemont's Speech
- President Puigdemont proposes a “deferred independence” for Catalonia.
Markets were on edge earlier today as they speculated that Catalonia would declare independence from Spain. He acknowledged that Catalans want an independent republic with a “yes” vote. However, President Puigdemont expressly stated in his speech that “Catalonia has won the right to independence” but proposed to suspend the referendum result. The President further stated that the European Union should be involved in talks with Spain.
Later, Puigdemont downplayed the implicated risks to business arguing that “companies should not be worried about the process.” Shortly after the President’s speech a Spanish government spokesman called Puigdemont’s irresponsibility “absolutely extreme.”
Chart 1: EURUSD Index 15-minute Chart (October 10, 2017 Intraday)
Following President Puigdemont continued moving in the intraday uptrend. Immediately after Puigdemont’s speech the Euro dipped about 25 pips against the US Dollar. At the time that this was written the Euro traded at 1.1806.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.