Breaking: Italian PM Conte quits – EUR/USD remains pressured

Yohay Elam FXStreet

Italian prime minister Giuseppe Conte has announced he is resigning, deepening the crisis in the third-largest economy in the euro-zone. Italy may go to elections around October if a political solution is not found.

Conte has accused interior minister and La Lega leader Matteo Salvini of bringing the government down. Salvini seeks to take advantage of his popularity to win the elections and become PM. Elections are not a done deal as the 5-Star Movement – the other coalition member – may form a government with the Democratic Party.

The debt-struck country has clashed with the European Union around its budget, and political uncertainty may increase tensions between Rome and Brussels.

EUR/USD is trading around 1.1075, under pressure. The daily low is 1.1065. Further support awaits at the 2019 low of 1.1027. Resistance is seen at 1.1110.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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