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. See our updated Privacy Policy here.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here:
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:
Euro Gains On Monte Paschi State-Rescue Plan

Euro Gains On Monte Paschi State-Rescue Plan

David Cottle, Analyst

Talking Points

  • The single currency picked up in Asia on news that the Italian cabinet was debating a rescue for Monte dei Paschi DeSiena
  • The tottering lender said this week that it had failed to secure sufficient private capital to carry on
  • A state lifeline has been the only viable option since

The Euro got a small lift in Friday’s Asian session on news that the Italian cabinet met late Thursday in Rome and agreed at State-led rescue of tottering lender Monte dei Paschi De Siena (known as “Monte Paschi”).

The world’s oldest bank said earlier that it had failed to secure sufficient private capital to keep it going. This probably made government aid inevitable, and indeed it was widely anticipated in the market. Still, investors took heart from the news that Rome is on the case.

EUR/USD rose from 1.04367 to 1.04439 after the news broke. However, Asian markets are thinned by the looming holiday break which will mean early closures in Auckland and Sydney. Tokyo is out of the game completely as Japan celebrates the Emperor’s Birthday holiday. This may mean that reaction was more muted than it might have been in a more typical session.

On Wednesday, Italy’s parliament authorized the government to borrow up to EUR20 billion ($20.9 billion) to bolster struggling banks starting with Monte Paschi, which has long been the gloomy poster child for Italy’s financial-sector problems.

On Thursday, Monte Paschi itself said that it had managed to raise less than half of the five billion euros in new capital it needed to secure by year-end to avoid being wound down. The bank was founded in 1472 for the provision of charitable loans to the needy, but now finds itself in need of donations.

Many Italian banks have struggled with bad loans, over-staffing and the legacy of Italy’s long economic stagnation. Total bad loans in the sector are reportedly some EUR365 billion, or 17% of balance sheets.

However, Italian shares have risen in recent sessions on hopes of the “benign” state bailout of Monte Paschi which now appears to be in the offing.

Confidence booster? EUR/USD

Euro Gains On Monte Paschi State-Rescue Plan

Chart compiled using TradingView

We have nowhere to hide. Check out DailyFX analysts’ fourth-quarter forecasts and see how they’re bearing up.

--- Written by David Cottle, DailyFX Research

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