Recent uncertainty in Italy is still hindering any Euro gains against Sterling, progress on this situtation is likely to strengthen to Euro. The table below shows the difference in Euros you could have achieved when buying £200,000.00 during the high and low points on Tuesday.
|Currency Pair||% Change||Difference on £200,000|
Italian political turmoil is causing a great deal of unease within the bloc as talks to form a coalition government falter. Lega and the Five Star Movement attempts to form a coalition government has continuously hit stumbling blocks and Italy has not had a firm government since the general election on 4th March.
A further complication occurred this week following pro-EU Italian President Sergio Mattarella vetoing the proposed appointment for the new finance minister, Paolo Savona, a seasoned Euro sceptic economist.
The leader of the Five Star Movement, Luigi Di Maio commented on the President’s decision:
“We were a few steps away from forming a government and we were stopped because in our cabinet there was a minister who criticised the EU.”
He continued “This is not a free democracy.”
The failure in recent coalition talks means there is the possibility of a snap general election in July.
Political uncertainty historically weakens the currency in question so if there was to be a call for an election this could create an opportunity for Euro buyers.
Euro sellers should consider taking advantage of present market conditions.
Manufacturing Purchase Mangers Index (PMI) is due out today and gives an indication business conditions within the manufacturing sector. There is expected to be very little movement, in fact figures are set to arrive at exactly the same as last month at 55.5. If they come in away from expectations however there could be volatility.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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