Forex News

The euro fell in light of the close deadline for the budget of Italy

On Monday, the euro fell against major world currencies during the European trading session, as investors continue to worry about the stalled negotiations between Italy and the European Union on the Italian budget, while the deadline for a revised budget plan very close.

Vice-Premier of Italy Matteo Salvini said on Sunday that the government could block the budget and other political decisions of the European Union if the partners of the bloc continue to manifest respect for the Italians.

The EU asked Italy to submit a revised budget plan by Tuesday.

Vice President of the European Central Bank Luis de Gindos warned that Italy’s fiscal crisis is a concern for public finances, given the considerable public debt and political tensions around the budget of Italy.

Regarding economic news, in the fourth quarter the growth rate of the French economy will remain unchanged, according to the latest forecast of the Bank of France ntsii, and GDP will grow by 0.4 per cent. This is the first assessment of the bank.

During Asian trading, the European currency weakened against its main competitors, except the pound sterling.

The euro against the Canadian dollar dropped from an intraday maximum level of 1.4959, recorded at 17:15 EST, to 3-week low of 1.4847. The next zone of support for the euro is expected to be around 1.47.

The single currency fell to 1.1240 against the US dollar, which has not happened since June 2017. Most likely, the euro will find support near the level of 1.11.

Having reached a weekly high of 0.8774 against the pound sterling at 1:30 am, the euro changed direction and retreated to the level of 0.8741. The zone of support for the euro is expected to be around 0.86.

The European currency fell to a 3-week minimum of 1.1352 against the franc and a 2-week minimum of 128.13 against the yen from early highs of 1.1399 and 129.19, respectively. The following possible euro support zones will emerge near the levels of 1.12 against the franc and 126.00 against the yen.

The euro fell from previous highs of 1.6833 against the New Zealand dollar and 1.5689 against the Australian almost to the minimum level in 5 months 1, 6716 and 3 months, 1.5622, respectively. In the event of a further decline in the euro, support zones are expected to be around 1.66 and 1.55 against the New Zealand and Australian dollars, respectively.

At 14:30 EST, San Francisco Federal Reserve Bank President Mary Daley will talk about the economic prospects for the regional economic development within the Eastern Conference in Idaho.