Search ForexCrunch

Senior Analyst at Danske Bank Piet Christiansen gives his views on the recent developments around the EUR and Italy.

Key Quotes

EUR/USD remains under pressure after Italy’s budget committee head Borghi yesterday reminded markets that some Italian politicians continue to flirt with the easy way out of debt problems: an Italian exit from the euro”.

“While this was later decisively dismissed as current government policy, it was certainly a reminder of the ultimate risk to Italy’s fiscal experiment. We expect a further widening of the political risk premium on EUR near term”.

“USD was little moved by Powell’s gradual hiking comments yesterday but supported by the NAFTA deal. More Fed speakers including Powell are scheduled today”.