Today brings the deadline for Italy to present their revised budget to the EU. A few weeks ago, the euro weakened off as the previous Italian budget got rejected by the EU for falling outside of EU guidelines.
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The Italian economy has been a fairly big talking point for those following euro exchange rates.
The deadline for the new budget is today, and submitting the revised plan on time and then having it approved will be highly important for euro exchange rates in the coming weeks.
It is no secret that the Italian economy is under a fair amount of stress at present and the Italian Government’s previous submission flouted a commitment to lower their deficit.
All eyes will be on not only Italy submitting their budget but then the EU accepting the revised edition. I would expect some drama to unfold between the EU and Italian Government in the coming days.
Sterling is exceptionally volatile against the euro at present, and both currencies have been losing ground against the dollar. The euro is at a 12-month low against the dollar at present and has not been performing particularly well against most majors, however it is holding ground against the pound.
This is mainly down to Brexit and the budget issue in Italy. Brexit talks are entering the vital stages at the moment and even the slightest piece of positive news is leading to sterling strength, any question marks over the UK Government's progress and sterling has been weakening rapidly.
In my personal view, it does seem like both parties are willing to put something together fairly soon. With this in mind I would not be surprised to see GBP/EUR push back up to and potentially exceed the 1.15 mark in the coming few days.
Those looking to buy euros however must be wary that these talks are fragile and may break down as we have seen before. There is also the risk of further Government resignations in the UK so although it looks like talks are progressing it still makes sense to approach any pending exchanges with caution.
If you would like to set a rate alert, limit order or simply discuss your own personal requirements then feel free to contact our trading floor today and we will be happy to explain the various options available to you in these extremely volatile market conditions.
Getting you timing right on a £200,000 transfer to euros in the past month could have achieved an extra €6800. For the very latest movements or an up to date exchange rate for GBP/EUR feel free to contact us today on 01494 725353 and we will be more than happy to keep you up to date with the very latest action.
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