Euro Wobbles on Political Risk

Asia-Pacific stocks largely rose early Friday in thin preholiday trade, following an overnight rebound in European equities and mild gains on Wall Street.

But one focus was the euro, which slid in Asian trading this morning after Catalonia’s separatist parties won a majority in their regional assembly. The currency fell as low as $1.1815 but it has since rebounded to $1.1850.

Oanda’s Stephen Innes says further buying will be capped as not many market participants want to carry an open position into the holidays given the risk of the election results bringing a new Spanish crisis.

WSJ

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. 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