Greg Gibbs, analyst at AmpGFX explained that the EUR has been undermined in recent days by political risk in Italy.
Key Quotes:
“The untested young leaders of anti-establishment populist parties in coalition talks to govern Italy have argued for freedoms from the rules of Eurozone monetary union.
Italian bond yields rose 16bp on Wednesday, with some contagion to other periphery government bond markets and European bank stocks.
The EUR has lost ground against a range of other currencies and may continue to languish should Italy’s new leaders propose significant new deficit spending that appears to flout the EU Growth and Stability Pact.”
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