Euro Recovers after Italian Prime Minister’s Resignation


After the Italian Prime Minister Giuseppe Conte threatened the future of the Italian government, saying he would resign before the vote of mistrust, the Euro recovered from its previous low levels.

It is unclear whether early elections will be sought or whether parliament will be asked to try a new government, while uncertainty remains.

The 5 Star Movement and the traditional center-left Democratic Party can form a majority, but they must first set aside their fundamental differences.

EUR / USD rose 0.1% to hit 1.1089.

The conflict between the EU and Britain over the Irish border in the Brexit agreement continued with sterling volatility. When German Chancellor Angela Merkel said that the EU would consider practical solutions to the border, the pound rose against the dollar, but the joy was short-lived and the pound withdrew.

The GBP / USD fell to 1.2072, rising 0.11% to hit 1.2138.

On Monday, British Prime Minister Boris Johnson wrote an open letter to EU Council President Donald Tusk, saying Britain would ultimately want to get rid of the EU’s regulatory standards. The EU continued to say that such freedom requires border and customs controls.

Tusk tweeted that those against the border did not produce realistic alternatives.

On the other hand, as the country is preparing to officially leave the bloc on October 31st, Brexit Minister Stephen Barclay said the British authorities will halt their participation in some EU meetings starting on September 1st.

The US dollar index, which measures the performance of the US Dollar against six other basket of currency, fell 0.1% to 98,137.

The Japanese yen, which was seen as a safe haven during the market turmoil, rose as the USD / JPY fell 0.2% to 106.36.


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