As we have mentioned in our article of today; ” EURUSD moved up to 1.18100 Tuesday on the back of stronger economic data and U.S. dollar weakness. Germany reported a larger-than-anticipated trade surplus driven by a 3.1% increase in exports. Economists only anticipated a 1.1% rise in demand but imports and exports rose sharply, which is a sign of strength for the economy. The most important risk for the euro Tuesday was the President of Catalonia’s speech. While he didn’t mention secession, hours later he made it official by signing a document declaring independence from Spain.The Prime Minister is determined to keep the country in one piece. On Monday he said, “Spain will not be divided, and the national unity will be preserved. To this end, we will employ all the means we have within the law. It is up to the government to make decisions, and to do so at the right moment.” Looking ahead, the main focus this week for the euro will be Thursday’s speech from ECB President Draghi. Wednesday’s single-currency performance will be dictated by the market’s appetite for U.S. dollars and since we expect hawkish FOMC minutes.




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