MUFG Research discusses EUR outlook on the back of  Spanish Snap Election on Nov-29.

"The main development in the euro-zone yesterday was the announcement from Spanish Prime Minister Pedro Sanchez that he has decided to call an early election for 29th November. It comes after parliament rejected his minority government’s housing plan last week which had fuelled speculation over a snap election. The government’s current term began in 2023 and was due to run until July 2027," MUFG notes.

"The latest opinion polls have been indicating that the centre-right People’s Party are well positioned to positioned to become the biggest party after the election although would require support from other parties without a majority. PP leader Alberto Nunez Feijoo has indicated that they could govern with the radical-right VoX party. While the snap election adds to political uncertainty in the euro- zone in the near-ter, we do not expect the outcome to materially add to downside risks for the euro," MUFG adds.