Euro Recovers Good Chunk of Ground

The euro recovered a good chunk of the ground it lost Monday. EUR/USD lifted to 1.1750 from lows just under 1.1700, EUR/CHF traded back above 1.1450, and EUR/JPY, among most other euro crosses, also gained.

The rise was concomitant with a stabilization on the Spanish stock market as investors move on from the ugly scenes from the weekend’s auto-mandated independence vote.

The European Union, mindful of other independent-minded regions in Europe, and not wanting to set a precedent, stressed that an independent Catalonia won’t get EU membership. The Catalonia government, for its part, has so far refrained from unilaterally declaring independence, contrary to promises made ahead of the vote.

Elsewhere, USD/JPY remained buoyant, though upside momentum has waned in the face of Japanese exporter offers above 113.00. The pair edged out a high at 113.19, which is six pips short of last week’s two-and-a-half-month peak.

Sterling came under pressure after a much weaker-than-expected construction purchasing managers index survey for September, to a contractionary 48.1 reading. Cable logged a 1.3238 low, but remained shy of Monday’s near three-week low at 1.3229.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

Leave a Comment