EUR/USD remains under pressure on Italy – Danske Bank
|Senior Analyst at Danske Bank Piet Christiansen gives his views on the recent developments around the EUR and Italy.
Key Quotes
“EUR/USD remains under pressure after Italy’s budget committee head Borghi yesterday reminded markets that some Italian politicians continue to flirt with the easy way out of debt problems: an Italian exit from the euro”.
“While this was later decisively dismissed as current government policy, it was certainly a reminder of the ultimate risk to Italy’s fiscal experiment. We expect a further widening of the political risk premium on EUR near term”.
“USD was little moved by Powell’s gradual hiking comments yesterday but supported by the NAFTA deal. More Fed speakers including Powell are scheduled today”.
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