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With European equity markets now open,.........>

EURO
EURO: With European equity markets now open, Spanish banks are taking the brunt
of the sell off following the Catalan election late yesterday, which resulted in
pro-independence parties holding a slim majority.
- The negative sentiment is evidenced in Spanish bond markets this morning with
yields rising across the curve which has, in turn, filtered through to the euro.
- Lows in EUR/USD were printed overnight at $1.1817, but a fresh wave of selling
alongside the European equity open pressed the pair to $1.1849.
- Of note, E1.09bln of option expiries at $1.18 are due to roll off at today's
NY cut.
- Any response from Madrid will be carefully eyed today ahead of the US PCE &
durable goods data at 1330GMT.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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