EUR: Trading heavily as European political concerns simmer - BBH

Analysts at BBH explain that the euro continues to trade heavily as European political concerns simmer. 

Key Quotes

“First, Catalan separatists maintained their majority in Spain’s regional parliament.  Second, Germany’s acting Foreign Minister warned of the possibility of a minority government even as coalition talks drag on.  The euro fell as low as 1.1815 before seeing a small bounce, but it remains the worst performing major on the day.”  

“Spanish Prime Minister Rajoy is reportedly meeting with his cabinet today to discuss his next possible moves.  We suspect this drama will play out over an extended period of time, and the uncertainty is likely to weigh on market sentiment.  Add in the drawn-out situation in Germany, which adds a dollop of uncertainty at that end, and one can see why the euro rally may have stalled.”