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Euro faces selling pressure as Spain calls early election

EUR/USD is testing support near 1.1200 ahead of Spain’s Nov. 29 early election, according to MUFG’s Lee Hardman.

Reported · Written up by our desk · Major Pairs

The Euro remains under selling pressure versus the US dollar, with EUR/USD testing support at 1.1200, MUFG’s Lee Hardman said, as Spain’s Prime Minister Pedro Sanchez calls an early election for November 29, according to an FXStreet note.

Opinion polls cited by Hardman point to gains for the People’s Party, potentially in coalition with VoX.

Hardman said the risk of additional downside from Spain is limited, adding that Euro performance into year end is more influenced by developments in the French government bond market and contagion risks from broader fixed income stress.

The note also references elevated US bond yields near multi year highs as part of the backdrop that supports the US dollar.

Latest closeEUR/USD 1.122 ▼0.3%

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