The euro continues to grow against the background of lower fears about the situation in Italy - Ester Holdings

The euro continues to grow against the background of lower fears about the situation in Italy

Investing.com – On Thursday, the euro rose in price after a sharp rise in the rate on Wednesday amid optimism that in Italy a way out of the political impasse is possible without holding new elections.

By 10:26 Moscow time, the pair EUR/USD rose by 0.2% to 1.1686, retreating from the minimum for ten months of 1,1509, recorded on Tuesday.

The rate of the European currency has grown because of the new attempts of Italy’s populist parties “The Five-Star Movement” and the “League of the North” to resurrect the government coalition. These attempts have reduced fears of holding repeated elections in Italy, which, in fact, can become a referendum on the country’s future stay in the euro area.

The yield of bonds of Italy fell after a sharp increase on Tuesday, but investors remain concerned about political risks in the euro area. At the same time, the Prime Minister of Spain on Friday will vote on a vote of no confidence in his government.

Also on Friday, the expiration date for EU countries from trade duties on the import of steel and aluminum in the US expires. There are also concerns about the trade conflict between the US and China, as well as the situation around North Korea.

Today, investors expect the publication of data on inflation in the euro area. Yesterday’s report on inflation in Germany, which exceeded the forecasts of experts, complicated the problems that the ECB officials have to deal with when discussing the curtailment of the financial incentive program.

The euro appreciated slightly against the yen. At the time of writing, the pair USD/JPY traded at position 126.93 after rising by 1.04% on Wednesday.

The dollar fell to the yen. The pair USD/JPY fell by 0.27% to 108.62, again approaching a minimum of five months 108.10, which was fixed on Tuesday.

The British pound has risen in price: the pair GBP/USD has increased by 0.2% to 1.3313 after a decrease on Tuesday to a minimum in six months of 1.3203 against the background of risks in the euro area.

The US dollar index, which shows the purchasing power of the dollar to the trade-weighted basket of six major currencies, fell by 0.17% to 93.89, retreating even further from the high of 94.98 in seven months, which was reached on Tuesday.

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