The euro dropped to a low level before a vote of no confidence in Italy - News of international financial, securities and currency markets

Ads Top

The euro dropped to a low level before a vote of no confidence in Italy

The dollar was little changed at the beginning of the European session today but began to create a boost against the Euro at the start of a trading day that politics could dominate the economy.

The Euro traded at 1.1079 USD at 3:30 AM ET (07:30 GMT) and is testing the level of 1.1066 - the lowest level last week before the important day in the Italian parliament. Prime Minister Giuseppe Conte will speak in the afternoon and is expected to resign before a vote of no confidence was called for by the right-wing Lega party member of the ruling coalition. Although both Lega and its counterparts - the 5-star movement seems to have given up on maintaining their government, it is unclear what could happen if the vote was not trusted.

It is possible that there will be a rush of elections, but it is also possible that President Sergio Mottarella will ask the parties in the parliament to form a new government. In theory, the 5-star Movement and the ultra-right-wing Democratic Party are capable of forming a majority and can pass the budget for the next year and eliminate the national budget dispute with the European Union. However, that would require the two sides to dismiss most of the past hostility towards each other.

Currently, economic news is also against the Euro, after Deutsche Bundesbank warned in Monday's monthly report that it is expected to have a second consecutive quarter of decline this summer, meaning the machine The euro zone's central economy will for the first time fall into a recession for the first time in a decade.

However, the Euro strengthened against the pound after Prime Minister Boris Johnson's latest Brexit initiative emphasized the difference between the UK and the EU on how to manage Irish borders in the future. In an open letter to EU Council President Donald Tusk, Johnson once again reiterated his desire to free the EU regulatory standards in the long run, suggesting an outlook that the EU always said would require. border inspection and customs.

The British pound was 1.0927 against the Euro, down 0.3% from the end of Monday and seemed to return to the downward momentum, ending a short rally triggered by the hope that lawmakers would reached an agreement between the parties to prevent the Brexit from happening without any agreement.

The US Dollar Index, tracking the greenback against a basket of currencies, rose below 0.1%, to 98.257.

Elsewhere, the EUR / CHF exchange rate is still supported because the context of global decline is forced to reverse transactions based on the interest rate difference of currencies (carry trade) and increase demand. For safe currencies. Analysts noted that deposits in the Swiss banking system have increased at a faster rate in the past four weeks, some strong proposals suggest intervention by the Swiss National Bank to slow down the price increase of the Swiss franc. At 1,0854 against the Euro, the Swiss franc has risen nearly 10% in the last 16 months, most of this increase over the past four months.

Không có nhận xét nào:

Được tạo bởi Blogger.