The Euro is trying to continue the recovery
Euro is trying to continue the recovery in trading on Monday after a rebound from lows around 1.1335 on Friday. The main struggle was now the mark of 1.14, the steady breakdown which is able to reduce the pressure on the pair.
At the weekend, the Agency S&P revised the Outlook for Italy to “negative”, although it left the rating itself unchanged. Many investors feared its decline and breathed a sigh of relief after the decision of the Agency.
Italian bonds against this background, moderately grown, and the yield decreased slightly, although the spread of bonds/Germany / Italy still exceeds 300 b.p. and hinders the strengthening of the single currency.
Meanwhile, there were reports that Merkel will not stand as a candidate in the next elections of the President of the Christian democratic Union. While the Euro has refrained from a violent reaction, but in the future this factor may increase pressure on the currency since it implies the increasing political instability in the region, as within the party can begin to fight for the right to claim the post of Chancellor.
The lack of progress on the Italian question, the news from Germany and the General instability of interest to the risk involve the preservation of downside risks for the single currency, especially ahead of Friday’s key employment report in the United States.
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