Catalonian’s Vote in Elections
Today the people of Catalonia have voted on who will be the next leaders of the region. After Carles Puigdemont declared independence for the region earlier in the year, there was a snap election called to decide the region’s future. The election is between the pro-independence parties and those who want to still be part of Spain. The vote is expected to be incredibly close and there isn’t thought to be indications of a winner just yet.
However, this afternoon the Euro has made gains of a cent against Sterling with the rate falling to a 3-week low of 1.124. This could suggest that there is an optimism that the independence party have failed in their bid to be re-elected. I would argue that if the independence party was to be re-elected then the Euro could weaken in the same fashion following the illegal referendum on the 1st October.
Tomorrow some of the final data for 2017 will be released with small releases across several countries within the EU. Today there was no data for the Eurozone which does mean that the only real market mover tomorrow is likely to be the decision on Catalan after the votes are counted tonight. In my opinion the independence party could win the vote as this debate has been going on for over 100 years. Considering that the region did declare independence and the Spanish government were sent in to clear protesters, there is still a huge amount of intensity in the region.
There are currently several members of the previous Catalonia government either in exile or prison, which certainly suggests this story is still far from done. In the early hours of tomorrow morning there will be a result assuming a recount is not required due to it being incredibly close. Should the independence side win then we can expect the Euro to lose ground.