Catalans to vote over independence - Rabobank
|"Catalonia is planning to hold a referendum on independence on Sunday 1 October," noted Rabobank analysts.
Key quotes:
"The referendum is deemed unconstitutional by the Spanish Constitutional Court, yet the Catalan government has claimed to declare Catalonia independent from Spain in case of a yes-vote."
"We think that the outcome will be in favour of independence, but only because we expect most anti-separatists not to vote. Turnout will expectedly be low enough to prevent the Catalan government from taking large irreversible steps towards independence."
"In the end, we believe Catalonia will mainly use the outcome of the vote to negotiate better terms and more autonomy for the wealthy region. Madrid seems prepared to offer Catalonia more money and autonomy, but it is unclear to what extent."
"Given the risen tensions it will be extremely difficult to restore the relationship between the central and Catalan government. The negotiation period is set to take a long time and with the ultimate risk of unilaterally declared independence, uncertainty will linger in markets."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.