empty
22.10.2018 04:11 PM
What will the euro and pound do? One holds the budget of Italy, the second Brexit

This image is no longer relevant

The movement of the euro and the British pound is becoming increasingly sensitive to geopolitical factors, such as Italian budget issues and Brexit negotiations, they have a more noticeable effect every day.

The euro began a week of growth against the backdrop of a statement by the Italian Prime Minister that the government is ready to sit at the negotiating table with EU representatives. At the same time, there was an increase in demand for Italian debt after a sharp sell-off in recent weeks. This year, the euro has often fallen when Italy's government bond yields rose.

The single currency rose 0.3 percent to $ 1.1550, departing from the recent lows of $ 1.1433. The euro also added 0.2 percent against the Swiss franc and against the pound. However, despite the vigorous start of the week, there is no certainty that the course will rise. The fate of the euro is still dominated by the Italian events.

This image is no longer relevant

Equity markets are largely in positive territory amid expectations of tax cuts in China next year, this news launched a rally, first in Asian markets, and then in Europe. This helped ease geopolitical tensions between the West and Saudi Arabia over the murder of a prominent journalist and distract from the problems of Britain and the EU. Foreign exchange markets were mostly calm, although a more positive news background at the beginning of the week caused bullish sentiment.

For the dollar, the key factors are the violent sentiment of the Fed and signs of the strength of the US economy. I recommend to closely monitor the data on US GDP, which will be published this week, these figures will be a key factor in determining the direction of the dollar. So far, the American has grown against the Japanese yen, despite the fact that the yen looked favorably against the background of growing risks in the form of Brexit, Italy, and trade stresses in general.

This image is no longer relevant

Irina Maksimova,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
I Belozerov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Panic grips markets: Dow and Nasdaq slide on weak forecasts, Fed in focus

UnitedHealth lowers annual profit guidance. Whirlpool plunges. UPS weighs on Dow Transports. Asian shares climb ahead of Fed policy decision. Indices fall: Dow down 0.46%, S&P 500 down 0.30%, Nasdaq

13:16 2025-07-30 UTC+2

US Market News Digest for July 30

US stock indices ended the day in the red due to weak earnings reports from major companies and anticipation surrounding the Fed's upcoming decision. Shares of UnitedHealth fell by 7.5%

Ekaterina Kiseleva 13:00 2025-07-30 UTC+2

Markets reel as UnitedHealth, Whirlpool's weak outlook drags indexes lower ahead of Fed decision

UnitedHealth forecasts full-year profit below expectations Whirlpool falls after Q2 profit miss, full-year profit forecast cut UPS weighs on Dow Transports Asian stocks rise ahead of Fed policy announcement Indices

Thomas Frank 08:28 2025-07-30 UTC+2

US Market News Digest for July 29

US stock indices showed mixed dynamics: the S&P 500 and Nasdaq posted modest gains, while the Dow Jones declined. Investor attention is focused on the upcoming Federal Reserve decision

Ekaterina Kiseleva 11:30 2025-07-29 UTC+2

Nike rallies, Dow Jones slips, tariffs weigh — key forces shaping markets today

The US and EU have averted a trade war. Nike shares have climbed. US and Chinese officials have resumed trade talks. Tariffs are acting as a drag on both

11:19 2025-07-29 UTC+2

Nike soars, Dow Jones falls, tariffs weigh — what's happening in global markets right now?

US, EU avert trade war with 15% tariff deal Nike shares rise after JP Morgan upgrade China, US officials resume trade talks Analysts warn tariffs are holding back

Thomas Frank 11:05 2025-07-29 UTC+2

US Market News Digest for July 28

US equity indices closed higher, with the S&P 500 and Nasdaq 100 setting new all-time highs following a fresh trade agreement between the United States and the European Union, which

Ekaterina Kiseleva 12:34 2025-07-28 UTC+2

Long-awaited truce and giants earnings: What's in store for financial markets this week?

US and European stock futures jump, euro stabilises after deal US-China talks continue, truce likely to be extended Earnings reports from major companies, Fed and Bank of Japan meetings

Thomas Frank 11:20 2025-07-28 UTC+2

Bitcoin's future predictable? Bitcoin marked by low volatility in dull trading

According to some crypto analysts, the future of the world's first cryptocurrency appears predictable and, to some extent, boring. Experts believe that Bitcoin's use in exchange-traded funds (ETFs) hasn't necessarily

Larisa Kolesnikova 10:40 2025-07-28 UTC+2

Wall Street on edge: Trump's Fed visit, UnitedHealth probe, rising S&P and Nasdaq

Thursday's session ended with record closes for the S&P 500 and Nasdaq. Investor optimism was fueled by strong earnings from Alphabet, boosting appetite for other leading tech names linked

12:05 2025-07-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.