News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Heads Up:🇺🇸 Goods Trade Balance Adv (JAN) due at 13:30 GMT (15min) Previous: $-82.47B https://www.dailyfx.com/economic-calendar#2021-02-26
  • Heads Up:🇺🇸 PCE Price Index MoM (JAN) due at 13:30 GMT (15min) Previous: 0.4% https://www.dailyfx.com/economic-calendar#2021-02-26
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.06% 🇨🇭CHF: -0.18% 🇨🇦CAD: -0.34% 🇬🇧GBP: -0.61% 🇳🇿NZD: -1.07% 🇦🇺AUD: -1.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XoinmY8IKD
  • Heads Up:🇺🇸 Core PCE Price Index MoM (JAN) due at 13:30 GMT (15min) Expected: 0.2% Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-02-26
  • Heads Up:🇺🇸 Personal Spending MoM (JAN) due at 13:30 GMT (15min) Expected: 2.5% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2021-02-26
  • Heads Up:🇺🇸 Personal Income MoM (JAN) due at 13:30 GMT (15min) Expected: 9.5% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-02-26
  • Heads Up:🇺🇸 PCE Price Index YoY (JAN) due at 13:30 GMT (15min) Previous: 1.3% https://www.dailyfx.com/economic-calendar#2021-02-26
  • Heads Up:🇺🇸 Core PCE Price Index YoY (JAN) due at 13:30 GMT (15min) Expected: 1.4% Previous: 1.5% https://www.dailyfx.com/economic-calendar#2021-02-26
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/OD2HjojJ9f
  • Gold has set a fresh 7 month low - testing below a huge spot of confluent support ahead of month-end the break happened overnight, and we've now seen about 7 hours of posturing above the 1750 level $Gold $GC $GLD https://t.co/QsFNeU4E9J https://t.co/hkHqj97Vap
EURUSD Vulnerable if Italian Banking Issues Not Addressed Soon

EURUSD Vulnerable if Italian Banking Issues Not Addressed Soon

Nick Cawley, Strategist

Talking Points

- Matteo Renzi resigns as Italian Prime Minister

- Worries over Banca Monte dei Paschi di Siena refuse to go away

- EUR may be vulnerable if the need for Italian bank refinancing lingers on

Matteo Renzi has formally resigned as Italian Prime Minister after the Senate approved his government budget for 2017. Renzi, who announced that he would be resigning on Monday after he lost the constitutional referendum vote, stayed on until the budget was passed at the request of Italian President Sergio Mattarella. The President will now start consultations with all parties to set up a new, interim, government.

And President Mattarella will need to form a new government as soon as possible to prevent growing worries over the country’s third-largest lender, Banca Monte dei Paschi di Siena, spilling over into the wider financial sector. While Italian asset markets have rebounded strongly after Monday’s referendum-vote sell-off, a potential sell-off is never too far away and that would weigh on the single currency.

Banca MPS shares have rallied sharply in the last 48 hours on talk that a government bailout and refinancing package is being prepared for the weekend. While this would certainly justify the previous two days’ upticks, a failure to agree a firm plan would leave the bank, and the Euro, vulnerable to another sell-off.

According to a recent report from ratings agency Fitch, Sunday’s ‘no’ vote has further heightened political uncertainty and possibly reduced the capacity to implement economic reforms.

“The Negative outlook for the Italian banking sector reflects its increased vulnerability to shocks following the asset-quality deterioration in legacy portfolios. A set-up in pressure from authorities and market participants on the sector to reduce the very high levels of impaired loans has increased the urgency and risks for Italian banks,” it argued.

These worries have not yet passed through to the single currency, which currently trades at a near one-month high against the US Dollar close to 1.0800.

EURUSD Vulnerable if Italian Banking Issues Not Addressed Soon

--- Written by Nick Cawley, Analyst

--- To contact Nick, email him at nicholas.cawley@ig.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES