TRENDING:

Italy: Political uncertainty continues – Danske Bank

Analysts at Danske Bank note that political uncertainty continues in Italy as premier-designate Giuseppe Conte has given up forming a government after the Italian President Sergio Mattarella last night rejected the proposal for finance minister by the incoming government of Five Star and the League.

Key Quotes

“This raises the prospect for new elections, which would add to market anxiety towards Italy. Moreover, on Friday, Moody's placed Italy's credit rating on negative watch. This is likely to be negative for Italian government bonds when the market opens this morning. After the rejection of the euro-sceptic Paolo Savona as finance minister, there was some relief in the EUR/USD.”

“Recently, the market pricing of the first ECB hike has been postponed amid political uncertainty in Italy and the market adapting to a slow normalisation. On Friday, according to Reuters, ECB sources indicated that the growth moderation 3has not weakened the ECB's resolve to end a bond-buying scheme later this year but could make it more cautious about signalling interest rate hikes. The first 10bp deposit rate hike was postponed further and is now expected by the market in autumn 2019, and 20bp in spring 2020.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD: Upside remains capped by 1.1600

EUR/USD trades in an unconvincing fashion around the 1.1560 region despite the better tone in the broader risk complex and amid the equally vacillating price action around the US Dollar. Investors, in the meantime, should pay close attention to developments from the US political arena, particularly anything related to the potential end of the US government shutdown.

GBP/USD holding just below 1.32 as UK labor data rounds the corner

GBP/USD kept its foot on the gas pedal on Monday, extending into a four-day win streak as Cable traders gear up for the latest round of UK employment figures. Veterans Day will see a moderation of market flows in the US on Tuesday, but hopes that the US could be close to wrapping up the longest government funding closure in its history should keep risk appetite well bid and put a hard cap on bullish US Dollar flows.

Gold holds gains near $4,150 as focus shifts to the weekly ADP jobs report.

Gold price holds positive ground near $4,150 in the Asian session on Tuesday. The precious metal edges higher after reaching a two-week high in the previous session, amid prospects for rate cuts by the US Federal Reserve in December and a softer US Dollar. The US ADP Employment Change Weekly will be in the spotlight later on Tuesday.

Coinbase rolls out public token sale platform, Monad to kick off launch

Coinbase announced that it will roll out a new platform for crypto offerings. The platform will enable individual investors to purchase digital tokens before they are listed on the exchange. Following its launch, Layer-1 network Monad will offer its token for sale on the platform on November 17.

AI shares an intrusive thought

If you’ve been following financial media over the past few weeks, you’ve probably seen the debate about whether the current AI-fuelled rally is a bubble. I’ve said many times that I believe it is—but the bubble question is almost secondary to a more immediate issue: what AI is about to do to jobs.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple extend recovery as market sentiment improves

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) traded higher on Monday after rebounding from key support levels the previous week. The top three cryptocurrencies suggest further recovery, as momentum indicators signal a fading bearish trend.