Forex Flash: Recent election in Spain creates uncertainty in austerity – Deutsche Bank (Barcelona) - In Europe, DB's Gilles Moec wrote that the Catalan election results make the potential for any Spanish MoU more difficult given the uncertainty it creates on the distribution of the austerity drive between Madrid and the regions.

“A coalition between the incumbent party CiU and Esquerra Republicana, which supported CiU's motion for a referendum on sovereignty, is most probable at this stage. However it’s likely that the CiU will need to clarify its exact view and timing of a referendum.” posit Macro Strategy Analysts C. Tan and J. Reid at Deutsche Bank. Despite the uncertainty, Spain's 10yr yield closed little changed at 5.584%.