European Session – Euro weakened by instability in Italian government
September 26, 2013 11:37 am
Politics seem to be driving markets these days, both from the US and now from Europe. Today there were some headlines out of Italy, where and rising political pressure give fresh signs of euro zone economic fragility.
This adds to the predominant market concerns of a possible US government shutdown.
Euro was affected by news that former Prime Minister Silvio Berlusconi renewed threats to bring down Italy’s coalition government if he is barred from politics. Italy has the Euro zone’s third largest economy, so it is a major player with regards to the euro.
EURUSD briefly fell from a session high of $1.3525 back below the key $1.3500 support level to a session low of $1.3484 before bouncing back late in the European session to $1.3508.
GBPUSD tumbled to $1.6034 after the release of higher-than-expected UK deficit on the current account in the second quarter. The pair had earlier hit a session high of $1.6094.
USDJPY reversed gains made in Asia which took the pair to a high of 99.10, and eased back down to 98.50 yen.
This pair remains vulnerable ahead of US jobless claims data later in the US session today. Pending home sales are also due, as well as GDP.
Fed taper and fiscal woes, US politics, US budget are all factors that could affect dollar and continue to provide a lot of uncertainty in the markets recently.
Politics seem to be driving markets these days, both from the US and now from Europe. Today there were some headlines out of Italy, where and rising political pressure give fresh signs of euro zone economic fragility.
This adds to the predominant market concerns of a possible US government shutdown.
Euro was affected by news that former Prime Minister Silvio Berlusconi renewed threats to bring down Italy’s coalition government if he is barred from politics. Italy has the Euro zone’s third largest economy, so it is a major player with regards to the euro.
EURUSD briefly fell from a session high of $1.3525 back below the key $1.3500 support level to a session low of $1.3484 before bouncing back late in the European session to $1.3508.
GBPUSD tumbled to $1.6034 after the release of higher-than-expected UK deficit on the current account in the second quarter. The pair had earlier hit a session high of $1.6094.
USDJPY reversed gains made in Asia which took the pair to a high of 99.10, and eased back down to 98.50 yen.
This pair remains vulnerable ahead of US jobless claims data later in the US session today. Pending home sales are also due, as well as GDP.
Fed taper and fiscal woes, US politics, US budget are all factors that could affect dollar and continue to provide a lot of uncertainty in the markets recently.
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