The Euro was able to make some headway after this weekend’s political drama in Italy; the common currency remains close to the session trough, however, as investors digest the repercussions of the political uncertainty. The Euro had managed to eke out a 2-week peak after Germany’s voting which gave Angela Merkel a strong vote of confidence and a chance to form a solid coalition there. The outcome in Italy, the Eurozone’s second largest economy, however, dampened enthusiasm for the Euro. Analysts point out that the anti-establishment movement means there is no single political entity strong enough to allow the formation of a stable government.
As reported at 11:05 am (GMT) in London, the EUR/USD was trading at $1.23, down 0.02% and off the session trough of $1.22689 while the peak is at $1.23644. The EUR/GBP is trading at 0.8909 Pence, down 0.17%; the pair has ranged from a session low of 0.89071 Pence to a peak of 0.89501 Pence.
Trade War Talk Impacts Dollar
Analysts say that the US Dollar is likely to remain under pressure following Donald Trump’s pronouncement last week of trade tariffs on aluminum and steel imports. Analysts say that investors are worried about the likelihood that countries impacted by the tariffs might retaliate which could then devolve into a trade war. The US Dollar Index, a measure of the greenback’s relative strength, was trading at 0.8992 .DXY, up 0.06%; the Index is off the day’s peak of 0.90216 .DXY.