Spain/Catalonia issue - bad for the Euro?

Will the political problems in Spain over demands for independence, threats of direct rule, etc, weaken the Euro over the coming weeks and months?

Lukas

Political uncertainty is always an additional risk for holders / buyers of a currency so potentially yes.

However, forex necessarily involves pairs of currencies and cash has to travel into one if it is removed from another, so this could benefit CHF, GBP or JPY. The counter-currency’s environment also has to be considered, so its hard to see masses of capital flowing from EUR to JPY.

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