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Dakar 2017
Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / The euro is falling
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The euro is falling

On Monday, the EUR/USD pair is gradually falling, although there are no specific reasons for the sales yet.

At the beginning of the new week, the euro has come under pressure, even though the external background and news flow looks pretty balanced. The current quote of the main currency pair is 1.1171.

Among today’s news, there is noteworthy information about the victory in the local elections, by the Catalan supporters of separation from Spain. It is a unit parties with a separatist direction, which are guided by the head of Catalonia, Artur Mas. According to the results of voting, supporters of the separation of Catalonia from Spain in the new parliament of the region will have 62 seats of the possible 135. This is the majority. For now, these are only local elections, but the talk of Catalonia separating has been around for a long time. This is understandable - Catalonia provides 22% of the Spanish GDP and is, in fact, a donor region.

Any split within any European country is not a very positive signal for the euro. The eurozone economy is not very strong, and the loss of a powerful part of one of the countries will have an effect on the financial characteristics Spain, and perhaps the eurozone as a whole. During a crisis, very few want to be a donor, so Catalonia’s motives are understandable.

A split is maturing a long time now within the European Central Bank. According to statements by representatives of the ECB Mrs Lautenschläger, a number of national banks under the supervision of the European Central Bank do not meet international standards of management. We are talking about the difference in the risk assessment and audit formats. Maybe further research will show that the problem is much deeper than it seems at first glance.

Uniform requirements for banks in the euro zone is a sore subject for the ECB. It is very difficult to unify a number of financial institutions and bring them to a common denominator in the issue of standards, as well as the terms of supervision.

For the euro, these are general news, with a fundamentally minor character, and the external background is generally quiet, so the investors rely on such information.
RoboForex Analytical Department

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