Over 800 people needed medical assistance after the Spanish police used force to prevent Catalans from voting in an independence referendum. The poll, deemed illegal by Spain’s constitutional court, resulted with 90% support for breaking away, but turnout was low, around 42%.
The European Union said that the conflict was internal and markets had largely ignored it. However, the violent scenes from Barcelona and elsewhere grabbed the headlines around the world. Spain’s heavy-handed approach could backfire.
EUR/USD started the week with a small gap, for the second week in a row. This time, the pair quickly closed the gap and returned to 1.18. However, it began drifted back down and reached a new low of 1.1760. Apart from the terrible scenes from Spain’s northeastern region, the US dollar found its strength once again.
The Catalan government, led by Carles Puigdemont, has called an extraordinary meeting of his regional government and a declaration of independence is one of the options. The Spanish parliament will convene to discuss the events.
Support awaits at 1.1712, followed by 1.1620. Resistance is at 1.1840.