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
  • RT @KyleR_IG: A history of US fiscal and monetary stimulus and the US 10 year yield: more stimulus, higher rates. When it comes to QE, mor…
  • 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:
  • Wall Street Futures Update: Dow Jones (+0.03%) S&P 500 (-0.11%) Nasdaq 100 (-0.28%) [delayed] -BBG
  • Volatility follows the FOMC's slow approach to its second taper, but neither the Dollar nor the S&P 500 have held their charge. With US GDP ahead, expect the echoes of the central bank's warnings and watch $EURUSD and $USDCAD
  • China to continue allowing Chinese companies to IPO in US exchanges - CNBC via BBG
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.85% Gold: 0.46% Oil - US Crude: 0.11% View the performance of all markets via
  • The Swiss Franc’s technical stance against the New Zealand Dollar and Japanese Yen has brightened, with the technical outlook in NZD/CHF and CHF/JPY primed to benefit CHF. Get your market update from @FxWestwater here:
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.17% 🇬🇧GBP: 0.09% 🇨🇭CHF: 0.04% 🇳🇿NZD: 0.03% 🇪🇺EUR: 0.03% 🇦🇺AUD: -0.19% View the performance of all markets via
  • (Gold Briefing) Gold Price Outlook Shifts Rosy Post FOMC, XAU/USD Eyeing US GDP Data Next #Gold #XAUUSD #GDP #Fed #FOMC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.18%, while traders in France 40 are at opposite extremes with 69.12%. See the summary chart below and full details and charts on DailyFX:
EURUSD Sell-Off Continues on Italian Budget Concerns, USD Strength

EURUSD Sell-Off Continues on Italian Budget Concerns, USD Strength

Nick Cawley, Strategist

Euro and US dollar Talking Points:

  • Italian government bond yields edging back to multi-year highs.
  • US dollar remains strong, underpinned by NAFTA 2.0.

The Brand New DailyFX Q4 EUR and USD Forecasts are now available to download.

EURUSD May Make a Fresh Low for the Year

A combination of ongoing Italian budget concerns and a US dollar invigorated by a last-minute NAFTA deal may push EURUSD back to the low seen on August 15 at 1.1300. with support levels looking shaky. In addition, last Friday’s Euro-Zone inflation print disappointed on the downside with the core reading falling to 0.9% from a prior month’s 1.0%, still substantially below the ECB’s mandate of around 2%.

Italian budget concerns continue to rumble on, putting pressure on the country’s debt pile. 10-year yields are looking to make new multi-year highs (yields go up when prices go down) with the EU Commission looking likely to reject the budget in November, leaving Italy at the mercy of an unforgiving bond market. 10-year Italian bond yields are currently just over 3.20%, around 270 basis points more than comparable German debt (0.48%) and 168 basis points more than 10-year Spanish bonds (1.52%).

The Italian stock market – MIB 40 - is around 0.75% higher in early turnover after falling by nearly 4% at one stage on Friday with banking stocks bearing the brunt of the move.

The US dollar continues its revival post-FOMC and is nearing a three-week high after news broke that the US, Canada and Mexico had reached a new three-way trade agreement called USMCA which will replace the old NAFTA agreement.

EURUSD Daily Price Chart (December 11, 2017 – October 1, 2018)

EURUSD Sell-Off Continues on Italian Budget Concerns, USD Strength

IG Client Sentiment Data can be used to see how retail traders are positioned in a wide range of currency pairs and other assets.

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on EURUSD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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