Having missed the 8pm GMT deadline to renounce its claims to Independence, the Catalonia Government now faces losing all its powers as Spain moves forward in suspending Catalonia’s autonomy.
Prime Ministers Rajoy’s government has confirmed that they will implement Article 155 of the constitution restoring full control of Catalonia to Madrid.
The Catalan Parliament has also warned that if there is no dialogue between the two Governments on the matter they will push ahead with a formal declaration of independence.
Fear that these latest developments will likely cause more unrest in the region sent Spanish stocks lower with the EUR/USD initially coming under pressure when the 8pm GMT deadline was missed dropping to 1.17686 levels before bouncing back about 1.1800. At the time of writing the EUR/USD is currently trading at 1.18047.