Italy: Savona becomes Minister of EU relations, Tria is new finance Minister

Eren Sengezer FXStreet

According to the Italian news outlet La Stampa, League, and Five Star were able to agree that Paolo Savona's role in a possible coalition government would be the Minister of the EU relations.

The initial reaction to this development weighed on the shared currency, and the dragged the EUR/USD pair to a fresh session low at 1.1640.

However, the pair was able to quickly reverse its course and spike up to the 1.17 handle after Giovanni Tria was named as the new Minister of finance.

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.

GBP/USD drops further, revisits 1.3430

EUR/USD weakens to two-day lows near 1.1420

Gold flirts with yearly lows near $3,950

CLARITY Act approval odds sink fast ahead of Congressional hearing

The United States (US) House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence (AI) is holding a hearing titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation” on Friday.

Risk-off rolls into Friday

I am waking up to a risk-off tape across equities this morning, with Asia-Pac shares on the ropes amid continued selling in the chip sector. Japan’s Nikkei 225 is down over 5% and on track to pencil in its worst single-day loss since March, while South Korea’s KOSPI has kept its door closed in observance of a national bank holiday.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.