- The selling pressure picks up pace around the European currency.
- Italian politics emerges as the exclusive driver for the pair’s weakness.
- EMU’s Consumer Confidence measured by the EC next of relevance.
The selling pressure is gathering traction around the shared currency in the second half of the week and is now forcing EUR/USD to re-visit the area close to 2018 low at 1.1510.
EUR/USD weaker on Italy
Spot is accelerating the weekly leg lower to the vicinity of 1.1500 the figure after news from the Italian political scenario hurt the sentiment surrounding the shared currency.
In fact, markets reacted negatively after Lega Nord’s Economist and euro-sceptic Alberto Bagnai has been appointed Head of the Senate Finance Committee. In the same line, stocks in Italy and the rest of Euroland are trading in the red territory while yields of the Italian 10-year note are trading in daily highs, widening the spread vs. their German counterpart.
Adding to the ongoing weakness around the pair, the greenback is prolonging the march higher and trades in fresh 11-month peaks around 95.40/50.
Data wise in the region, the flash measure of the Consumer Confidence by the European Commission is coming up next along with the Eurogroup meeting. IN the US calendar, the Philly Fed index will be the salient event seconded by weekly Initial Claims.
EUR/USD levels to watch
At the moment, the pair is losing 0.47% at 1.1520 and a breakdown of 1.1509 (low Jun.21) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the flip side, the next hurdle aligns at 1.1646 (high Jun.19) seconded by 1.1661 (10-day sma) and finally 1.1674 (21-day sma).
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