Italy has added to the troubles of the Euro
In the middle of the European session on Thursday the dollar index, which previously reached 11-month highs in the area of 95,50,exceeding the resistance of 95.15, slightly retreated amid falling yields on 10-year treasuries to session highs in the area of 2.91%. Against this background, the USDJPY, which informed the growth to the level of 111.00, has lost much of points and almost returned to their original positions.
However, the General positions of the American currency remain high, largely due to the continuing fall of the Euro. EURUSD has updated the lows of July last year, slightly above $ 1.15, the threat of which testing has increased dramatically.
Bullish trend for the USD and the divergence of monetary policy of the fed and the ECB added political risks in Italy who returned to the scene and spoiled the recovery of global financial markets. In particular, investors did not like the appointment of the two eurosceptics from the party of the League in key committees of the Italian Parliament.
So, Alberto Bagnai will head the Senate Finance Committee, and Claudio Borghi, chief economic adviser to the League leader Matteo Salween, stand at the head of the budget Committee of the lower house of Parliament. This immediately provoked fears about the aggressive policies of the new government and further rupture of relations with Brussels.
Considering that the Euro is already sensitive to flight risks, and this time source of sales was the European factor, the pressure on the single currency is likely to continue in the near future.
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