Anyone who as an interest in currency and Forex trading will be keeping a very close eye on developments in Spain over the next few days and weeks, for with Catalonia having declared independence, the value of the Euro may take a hit and possible nose dive.
The government of Spain have of course rejected the declaration of independence, and will today and in the coming days be taking back overall control of Catatonia and have also announced that a snap general election will be held in December.
One thing that will not have escaped any currency traders notice is that as the independence party are fully entitled to take part in that snap general election, and most certainly will be taking part in it, then there is a very good chance they could actually win the most votes in that the Catalan areas!
If that happens then it will cause an even greater headache of the government in Madrid, however in the short term it is going to be the way the government do retake control over Catalonia that is going to either cause more problems or help stabilize the area.
We have so far seen just a small decrease in the value of the Euro again some other countries and nothing that could be described as a major swing, however it will certainly be worth keeping your eye on all developments in Spain for the very foreseeable future!
It is often GBP that benefits from any instant drop in the value of the Euro, however as Great Britain is currently up to their eyeballs in Brexit negotiations, which do not appear to be making any real progress, GBP is currently trading at some record lows not only against the Euro but also many other currencies too
In regards to just which currencies you should be pairing up and trading against each other in the coming days or weeks well, we will leave that decision to you, for there are bound to be all manner of events in the coming days, from Spain and the UK that are going to have an instant effect of their respective currencies.
At least the holiday season if now over in most of the UK, for during the summer months the value of GBP did drop quite noticeably against the Euro with holidaymakers having to take the pain of getting some of the very lowest exchange rates when jetting off to Europe.
It is always a very volatile trading area, the Forex one, and what more and more people are tending to do now if they are needing foreign currency is hedging their bets so to speak by using one of the many Forex brokers in the hope they can get more for their money when travelling abroad and locking in the best value often quite a long time in advance of them going overseas, and there are plenty of Forex brokers available.