Italian political Turmoil weighing on the Euro
The Euro is under a major pressure on the back of the political turmoil which is taking place in Italy. If investors were thinking that politicians can use the weekend to come to their senses then they will be profoundly disappointed this morning as the 17 nation currency is facing pressure against all major currency pairs.
Certainly, the threats by Silvio Berlusconi to pull his five ministers out of the government is impacting the investor’s confidence this morning, and it has shattered the truce with the coalition parties by leaving the third biggest economy of the Europe with the even more ungovernable situation. To fuel the uncertainty further, a rating cut for Italy is also on the cards which is a concern for traders who wants to take a long position on the euro.