Home EUR: Italy Continues To Exert Downside Pressure As ECB Not About To Run To The Rescue – Nordea
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EUR: Italy Continues To Exert Downside Pressure As ECB Not About To Run To The Rescue – Nordea

EUR/USD is trading at lower ground, pressured by USD strength but also on pressure from the Italian situation. What’s next?

Here is their view, courtesy of eFXdata:

Nordea Research discusses its reaction to today’s ECB policy decision and notes that  Italy continues to exert downward pressure on the euro and German yields as  President Draghi did not offer a helping hand to Italy at today’s press conference.  

“In the Q&A, most questions centered on Italy, but Draghi did not provide any new insights into the topic. The ECB sees the Italian case as primarily a fiscal issue, not a monetary one. Draghi also reminded that outright monetary transactions (OMT) programme remains available.  In conclusion, the ECB is not about to run to Italy’s rescue, even if market conditions deteriorated further,” Nordea notes.

“There was little new information from the ECB at the October meeting, certainly no new monetary policy signals. We see little reason to change our call of the first rate hike taking place in December 2019. The net asset purchases are very likely to end at the end of 2018,” Nordea adds.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.