Euro Slides After Catalan Vote

The euro weakened against most major currencies in the European session on Monday amid a political crisis in Spain after Catalans voted in favor of independence in a contested referendum.

In the weekend referendum, the Catalonian’s voted to leave Spain that opened the door for political turmoil in the province.

In other economic news, final data from IHS Markit showed that the euro area manufacturing sector grew the most in over six-and-a-half years in September.

The final manufacturing PMI climbed to a 79-month high of 58.1 from 57.4 in August, suggesting expansion for the fifty first month in a row. The flash score was 58.2. The German manufacturing sector logged its strongest performance in over six years.

The German manufacturing sector logged its strongest performance over six years in September.

The headline IHS Markit/BME factory PMI improved to 60.6 in September, in line with flash estimate, from 59.3 in August. This was the highest reading since April 2011.

The French manufacturing sector’s strong 2017 continued at the end of the third quarter, final data showed. The factory PMI came in at 56.1 versus 55.8 in August. The reading was slightly higher than the flash estimate of 56.0.

Data from Eurostat showed that the euro area unemployment rate remained stable in August at the lowest level seen since early 2009. The jobless rate came in at 9.1 percent in August, the same rate as seen in July. This was the lowest rate since February 2009.

The rate was forecast to drop to 9 percent.

In the Asian trading today, the euro held steady against its major rivals.

In the European trading, the euro fell to a 4-day low of 1.1734 against the U.S. dollar and a 3-week low of 1.1389 against the Swiss franc, from early highs of 1.1815 and 1.1442, respectively. If the euro extends its downtrend, it is likely to find support around 1.16 against the greenback and 1.12 against the franc.

Against the yen, the euro edged down to 132.44 from an early high of 133.07. The euro may test…

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