ECB's Visco: Supply bottlenecks starting to weigh on Italian economy

Eren Sengezer FXStreet

European Central Bank (ECB) Governing Council member Ignazio Visco said on Thursday that supply bottlenecks are starting to weigh on the Italian economy and added that they could last for longer than expected, per Reuters.

Additional takeaways

"Household and business bank deposits have increased by more than 200 billion euros, will decrease as consumption resumes."

"European Union should consider joint management of at least the last two years of countries' debt, with sink fund to purchase national bond offers."

"Pandemic showed limits of the European Union without a common budgetary capacity."

"Public debt crucial to counter the crisis but cannot be used to finance current expenditure."

Market reaction

The shared currency remains on the back foot after these comments and the EUR/USD pair was last seen losing 0.1% on the day at 1.1640.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold falls to near $5,100 as inflation fears weigh amidst Middle East conflict

Gold price faces some selling pressure near $5,100 during the early Asian session on Wednesday. The precious metal falls amid a renewed US Dollar demand and dimming prospects for US rate cuts. The US ISM Services Purchasing Managers Index report will be published later on Wednesday.