FXStreet (Delhi) – Research Team at Deutsche Bank, suggests that in Spain the holiday period has brought no clarity and so bringing little change to the ongoing political uncertainty.
Key Quotes
“Marco highlights that there is no straightforward solution for the post-electoral political fragmentation in Spain. Moreover, Catalonia’s political conundrum overlaps with the national political puzzle. An early election at a national level is a question of when rather than if however a new election will not necessarily lead to a solution of the political impasse, above all if there are no significant changes across parties.
While the ECB QE programme should contain any major movements in government bond yields, there is still likely to be no progress on the structural reform side in Spain, meaning Spain remains vulnerable to internal and external shocks when the ECB’s liquidity tap eventually starts to tighten.”
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