Euro Climbs On Easing Catalan Worries

The euro strengthened against its key counterparts in the Asian session on Wednesday, after Catalan leader Carles Puigdemont proposed to suspend the effects of independence referendum to seek negotiations with Spain.

Speaking to Parliament late Tuesday, Puigdemont said the government is willing to "ask Parliament to suspend the effects of the declaration of independence so that in the coming weeks we can undertake a dialogue."

The Spanish government rejected Puigdemont's statement and has not offered an official response for calls for dialogue with government.

Prime Minister Mariano Rajoy is holding an emergency cabinet meeting to discuss the situation in Catalonia.

Investors also awaited the Fed minutes from September's policy meeting due later today.

The currency has been trading in a positive territory in the Asian session.

The single currency advanced to a 2-day high of 0.8969 versus the pound and a 9-day high of 132.97 against the yen, from its early lows of 0.8939 and 132.69, respectively. The next possible resistance for the euro is seen around 0.91 against the pound and 134.00 against the yen.

The 19-nation currency climbed to more than 2-week highs of 1.1845 against the greenback and 1.1539 versus the franc, reversing from its early lows of 1.1795 and 1.1506, respectively. Further uptrend may take the euro to resistance levels of around 1.19 against the greenback and 1.16 against the franc.

The euro climbed to a 1-1/2-month high of 1.4821 against the loonie, 4-1/2-month high of 1.5206 against the aussie and a 17-month high of 1.6759 against the kiwi, off its previous lows of 1.4765, 1.5145 and 1.6651, respectively. If the euro rises further, it may find resistance around 1.49 against the loonie, 1.53 against the aussie and 1.69 against the kiwi.

Looking ahead, Chicago Fed President Charles Evans speaks on economy and monetary policy in Zurich.

The Federal Reserve's minutes from the September 19-20 meeting is due in the New York session.