The euro has been trading near three-month lows. Last Friday Catalonia announced its independence, which is why we expect a continued decline for the euro, however, today with the start of trading the euro won back some positions. Nevertheless, the politically tense situation in Spain will continue to have a negative impact on the euro. Yesterday in Catalonia there was a peaceful demonstration attended by 1.3 million people, who spoke against the separation of the region. On Friday after the declaration of independence of Catalonia, Spain's parliament dissolved the local government, thus denying the legitimacy of any decision of that authority. At the moment the uncertainty of the situation affects the economic picture of the entire Eurozone.
This week we expect Trump's appointment of a new Federal Reserve chairman. During this period, the President of the United States plans to visit five Asian countries and, in particular, to discuss the situation of stability in the region associated with the stress around North Korea.
