The Euro has weakened ever so slightly towards the end of the week as the new Italian Government showcases its 2019 budget ahead of approval from the European Commission by the end of the year. More on how this could impact the single currency in todays market report. The table below shows the potential difference in return you could have made when selling £200,000.00 during the high and low points of trading during trading hours yesterday.
|Currency Pair||% Change||Difference on £200,000|
Investors are starting to grow weary of a possible clash between Italy and Brussels and this could cause the Euro to weaken even further in the up and coming weeks.
Italy’s current Government is currently formed by the Five Star Movement and League parties and have both at various points spoken of their shared dislike of the Euro. Whilst they have calmed markets by pledging a commitment to the Euro, the real test is now ahead. The new Government have pledged to increase public spending and roll back the austerity measures imposed on the Italian population in order to combat the Eurozone crisis.
Under the new EU rules, member states are not allowed to up deficits in excess of 3% output.
If the EU and Italy clash, there are fears that this could cause an even greater feeling of anti-Euro sentiment within Euro that could cause a backlash from the Italian population. This is definitely a story for clients to keep an eye on in the up and coming weeks in my opinion, with any spikes in Italian financial instability likely to cause anxiety in investors and Euro weakness.
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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