Italian/Deutsche bund spread starting to move as Italian budget crisis continues

Russell Shor, CFTe, MFTA FXCM

The above chart shows daily price action. The Italian-German 10-yr yield spread is at 3.01%. The middle indicator is the RSI(14). The black horizontal is the 50 level. The bottom indicator is the MACD histogram. The RSI(14) is above the 50 level (green ellipse) and the MACD histogram has ticked up (upsloping green trendline) This is likely due to an escalation in the uncertainty regarding Italy’s budget deficit and the EU’s rejection of its initial proposal. According to Giovanni Tria, the Italian finance minister, Italy is still committed to a 2.4% deficit in 2019. This, while the EU’s, Moscovici is expecting a revised Italian budget by 13 Nov.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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