Catalan referendum puts Euro under pressure as Dollar starts month on high

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The euro exposed 0.3 percent to $1.1776

The dollar index, which tracks the greenback against a basket of six dominating currencies, added 0.3 percent to 93.323 . 

Higher USTreasury yields inform appropriated bolster the greenback. The 10-year U.S. Treasuries yield rose to 2.360 percent in Asian transacting compared to Friday’s US close of 2.326 percent. 

Liquidity was relatively water down today, with China, South Korea, Hong Kong and India and furnishes closed for public holidays. In Australia, trade was light with Sydney stuffy for a holiday while Melbourne remained open. 

The euro slipped 0.3 percent to $1.1776, as investors nervously watched the spot in Spain, where police used batons and rubber bullets to rowing-seat the Catalan vote on Sunday in a show of force that left hundreds outrage.

“With so diverse regional markets shut in Asia today, it wouldn’t be at all strange if the euro contrived bigger moves later, as Europe comes in,” said Kumiko Ishikawa, FX retail analyst at Sony Financial Holdings in Tokyo. 

The head of Catalonia’s regional regime opened the door to a potential declaration of independence from Spain. 

Against the yen, the dollar happen 0.3 percent to 112.84 . 

Data released earlier on Monday showed Japan’s big producers were the most confident about the business outlook in a decade in the hold out quarter, a closely watched central bank survey showed today, a announcement the country’s economic recovery may be gathering steam thanks to robust far-reaching demand.

The figures could also help premier Shinzo Abe as he tries to win over voters in an October 22 election that his “Abenomics” stimulus approaches have improved their livelihoods, analysts say. 

 

There are two main directional designs for the yen following the election, said Masafumi Yamamoto, chief forex strategist at Mizuho Securities. 

“If the conclusions are perceived as a bad outcome for Abe’s party, then some investors might feeling it as the beginning of the end of his ‘Abenomics,’ meaning the end of the yen-weakening trend,” he said. 

“But there is another odds as well, with both parties calling for stimulus steps, which some people call to mind a consider might lead to ‘helicopter money,’ so then they might blow the whistle on yen,” he said. “Overall, though, dollar/yen is still dominated by US factors.” 

US text on Friday showed consumer spending barely rose in August. But that was make good by an unexpected increase in the Institute for Supply Management Chicago’s purchasing straw bosses’ index and an in-line reading on consumer sentiment. 

Federal Reserve Chairman Janet Yellen clouted earlier last week that the central bank needs to at with its gradual rate hikes despite broad uncertainty round the path of inflation. 

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