The Euro hold firm in Asia

On foreign exchanges, the euro edged up further after Catalan leader Carles Puigdemont adopted a more conciliatory tone in a speech on independence. The unit was at $1.1868 Thursday, well up from the low $1.17 mark seen last week, though well off the $1.2033 enjoyed in September.

Later Spanish Prime Minister Mariano Rajoy gave him until next week to clarify whether he intends to push ahead with a breakaway, warning Madrid would suspend the region’s autonomy.

“The market appears to have welcomed the decision… to give Carles Puigdemont, the president of the government of Catalonia, five days to clarify whether he has declared independence from Spain or not,” Rodrigo Catril, FX Strategist at National Australia Bank, said in a commentary.

However, Stephen Innes, head of Asia-Pacific trading at OANDA, warned that he still saw the single currency’s gains “as more of a relief rally as EU risk has tentatively settled”.

The dollar was also slightly down against its main peers following the release of minutes from the Fed’s most recent board meeting, which suggested policymakers edging towards another rate hike but some expressing concern at still weak inflation.

Yahoo Finance via AFP

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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