Euro Drops on Spanish Election

The Spanish election results are rolling in, and the news is of upsets. Concerns about a Greece-style situation in Spain are dragging on the euro as a result.

Upsets in Spain are weighing on the euro today, thanks to concerns about the parties gaining power. Municipal and regional election results are punishing the ruling party and politicians against austerity measures and continued corruption are being voted in. Many think that this could mean a new order for Spain, as those gaining power are associated with parties similar to the ruling Syriza party in Greece.

Concerns that a Greece-style debt crisis could envelope Spain are weighing on the 19-country currency today. Recent economic news that has been supporting the euro to some degree is being forgotten as analysts contemplate the possibility that Spain could join Greece on the edge.

Many markets are closed for holidays today, but some local bourses were open in Europe. Markets in Spain and Greece were lower today as concerns about the Spanish election results spread.

At 13:53 GMT EUR/USD is lower, heading down to 1.0974 from the open at 1.1004. EUR/GBP is also lower, dropping to 0.7099 from the open at 0.7109. EUR/JPY is losing ground as well, falling to 133.3800 from the open at 133.6750.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *