As a rule, the currency market is not very active at the end of the year, but this time the main currency pair is “in full swing”.
After yesterday’s “victorious” growth, the EUR/USD pair is falling on Friday morning. The current quote for the instrument is 1.1848.
The major important factor, which attracts a lot of attention this morning, is Spain. The country finished counting the votes of the early parliamentary elections in the region and the results were stunning: Catalonia independence supporters got the majority in the parliament. Three parties with the same idea to free Catalonia got 70 seats out of 135. Immediately, there were big words that it was necessary to stop controlling Catalonia from Madrid and exclude the corresponding article from the Constitution. The elections had the highest ever turnout, 82%. The previous record was in 2015, 77%.
So, from now on the majority in the parliament will have no problems with appointing “their“ person as the head of the country’s government, Generalitat. Right now, it’s not clear whether it will be Carles Puigdemont or somebody else.
For the Euro, this news means that the Spanish “door hasn’t been shut” yet and the things will be moving very rapidly, because Madrid can’t ignore the opinion of the regional parliament. Official authorities of the country will have to take a new stand against Catalonia due to changed circumstances. As a result, the European currency may really fluctuate a lot all this time.
When it comes to the news from the USA, everything is pretty quiet. The final GDP report showed that the indicator increased by 3.2%, which is a bit worse than expected, but still continues the positive impulse.
After all scheduled reports are published in the late afternoon, the EUR/USD pair is expected to become less active due to the upcoming Christmas holidays. Significant fluctuation may return on Tuesday evening.
RoboForex Analytical Department