FXstreet.com (Barcelona) - For the next week, the TD Securities team of analysts point to three major events in Europe: the Spanish Catalonia elections on Sunday, the second Eurogroup meeting on Monday, and the German Parliamentary Vote on Greek Measures likely on Thursday or Friday.
About Spain, the Catalonia election is expected to be a plebiscite on Catalan independence. “But legally, they cannot secede and more likely, it will provide a political venting for voter angst, and perhaps see the central government cede some authorities to the local government to give both sides a win”, they wrote, adding that Catalonia cannot afford to leave and cannot fund themselves in the market without the central government.
In regard to the Troika meeting, the question is if the Eurozone will give in to the IMF demands in order to keep Greece liquid as they aren still not ready to discuss government losses on loans to Greece.
By the end of next week, the German Parliament will vote on new Greek aid measures and it should pass easily, despite possible market nervousness.
About Spain, the Catalonia election is expected to be a plebiscite on Catalan independence. “But legally, they cannot secede and more likely, it will provide a political venting for voter angst, and perhaps see the central government cede some authorities to the local government to give both sides a win”, they wrote, adding that Catalonia cannot afford to leave and cannot fund themselves in the market without the central government.
In regard to the Troika meeting, the question is if the Eurozone will give in to the IMF demands in order to keep Greece liquid as they aren still not ready to discuss government losses on loans to Greece.
By the end of next week, the German Parliament will vote on new Greek aid measures and it should pass easily, despite possible market nervousness.
