From J.P.Morgan: FX Commentary EUR The euro...>

FOREX: From J.P.Morgan: FX Commentary

EUR

The euro is trading modestly higher against the dollar this morning after a

weekend of mass demonstrations in Catalonia in favor of Spanish unity and

positive German economic data. The deputy prime minister of Spain warned

Catalonia it risks economic chaos if the rebel region continues pursuing

independence, with the government in Madrid saying it stands ready to intervene

and reassert control. A senior member of the Catalan regional government called

for dialogue with Spain and warned that all of Europe faces economic damage

unless a resolution is found. These developments gave the euro a slight boost

this morning, as talks between the two parties become more likely. On the data

front, German industrial production (2.6% vs. 0.9% est) rebounded from a summer

lull with its best month in six years, keeping Europe's largest economy on solid

footing in the second half of the year. Later this week, data out of the region

will be light, but we will get region-wide industrial production numbers on

Thursday.