Euro Fell As Political Crisis in Spain Increased

Forex News

The euro fell by 0.17% against the US dollar today. The euro/dollar pair is trading at 1.1853. The European single currency weakened after it became known, that the parties that support the independence of Catalonia received 70 seats in parliament out of 135. Now, the fourth largest economy in the Eurozone expects more political uncertainty and instability.

German GfK Consumer Climate increased to 10.8 in January from 10.7 in December. The GfK report noted that the consumer climate can increase again and will be a successful beginning of 2018. Consumer spending in France rose by 2.2%, which is much higher than the forecast of 1.4%.

The US GDP showed a significant increase of 3.2% in the third quarter. With the growth of the US economy above 3% for another quarter, it is expected that the Federal Reserve can continue to tighten its monetary policy in January. According to the CME Group, the probability of a rate hike in January is 98%. If the economy continues its current pace, the Fed can raise rates to four times in 2018.