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The Euro couldn’t keep momentum. Overview for 21.08.2019

21 august 2019 - Fx4News

EURUSD was moving upwards last night influenced the Italian news, but couldn’t continue the momentum. 

EURUSD is under slight pressure on Wednesday morning. The current quote for the instrument is 1.1094.

The Italian Prime Minister Giuseppe Conte resigned from his position and the country’s President accepted his resignation. The reason is internal political turmoil that split the governing coalition consisted of two parties, “Five Star Movement” and “Northern League” (Italian “Movimento 5 Stelle” and “Lega Nord” respectively). Conte shifted the responsibility for this onto Matteo Salvini, the Deputy Prime Minister of Italy and the Secretary of Lega Nord. 

It appears that the parliament will be dissolved and the President will call new elections. 

For Italy, it’s an opportunity to erect a new government, which will try to solve the budget issue. The European Union warned Rome on several occasions about the consequences of the budget deficit the country had. They might be fines from the EU, at least, or suspend the country from the alliance, at most. The first scenario is quite neutral for the European currency, while the second one is extremely negative. 

Market players’ attention is still focused on the Jackson Hole Symposium this Friday, where they expected a speech from the FOMC Chairman Jerome Powell.

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