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.

Free Trading Guides
EUR/USD
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
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • $GBPUSD Daily Pivot Points: S3: 1.2329 S2: 1.2402 S1: 1.2439 R1: 1.2513 R2: 1.255 R3: 1.2623 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • $USDJPY Daily Pivot Points: S3: 107.56 S2: 107.94 S1: 108.17 R1: 108.55 R2: 108.71 R3: 109.09 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.46% 🇬🇧GBP: 0.44% 🇯🇵JPY: 0.37% 🇪🇺EUR: 0.10% 🇳🇿NZD: -0.30% 🇦🇺AUD: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Sb9uhtKouK
  • Big news over the past couple of hours: - Norge’s Bank raises rates to 1.50% - #BOE says if #brexit uncertainty persist, likely to be weaker inflation - #ECB delivers 3.4 billion euros in a new round of long-term loans to banks (BBG)
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.84% Gold: 0.31% Silver: 0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/cCtIGXgMjw
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.67%, while traders in France 40 are at opposite extremes with 85.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/L97bbhVulc
  • $EURUSD Daily Pivot Points: S3: 1.0927 S2: 1.0982 S1: 1.1007 R1: 1.1063 R2: 1.1094 R3: 1.1149 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • With the EU-UK #Brexit negotiations ongoing and no certain path to an amicable resolution, the @bankofengland has warned that it may cut rates soon. Where is $GBUSD heading? Get your market update from @CVecchioFX here: https://t.co/CKPGqolOAR https://t.co/E7dGEiKVYP
  • US Equities Update (Thursday Close): $DJI -0.19% $SPX -0.04% $NDX +0.17% $RTY -0.40% $VIX +0.79%
  • As I listen to music while analyzing, I remind myself that: SRV > Jimi #ControversialViews
Euro Price Outlook Worsens as Italian Politics Move Into Focus

Euro Price Outlook Worsens as Italian Politics Move Into Focus

2019-05-15 15:00:00
Martin Essex, MSTA, Analyst and Editor
Share:

EUR price, news and analysis:

  • A threat by the leader of Italy’s right-wing League to break the EU’s fiscal rules could damage the Euro.
  • For now at least, traders will likely pay more attention to the sparring in Italy than to some modestly positive economic data from the Eurozone.

Euro price at risk from Italian politics

A call by Matteo Salvini, who leads the right-wing League party in Italy, for the Italian government to be ready to break the EU’s debt ceiling of 3% of GDP and raise the country’s debt to 140% of GDP if necessary could undermine the Euro in the days ahead.

Salvini, who is also one of Italy’s deputy prime ministers, is currently campaigning for the European Parliament elections on May 26 and was immediately criticized by Luigi Di Maio, who leads the anti-establishment 5-Star Movement.

The two parties are currently coalition partners but Di Maio, who is deputy prime minister too, said Salvini was being “pretty irresponsible” to create market tensions by “shooting off” about increasing the country’s already high debt.

If this sparring continues, it could well weaken the Euro despite some positive Eurozone data released Wednesday and reports that US President Donald Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months that lifted EURUSD late in the European day.

EURUSD Price Chart, Hourly Timeframe (May 8-15, 2019)

Latest EURUSD price chart.

Chart by IG (You can click on it for a larger image)

You can find a technical view on the outlook for the Euro here

In Germany, flash first-quarter GDP data released Wednesday showed a 0.4% increase quarter/quarter after a flat reading in the previous quarter – although year/year figures showed a drop in growth to 0.6% from 0.9%. As for the Eurozone as a whole, data released later revealed that growth doubled to 0.4% quarter/quarter and was stable at 1.2% year/year.

This more optimistic economic data will likely be ignored though as risk appetite remains poor, prompting money to flow into safe havens such as German government bonds. Bund yields were lower in almost all maturities Wednesday, with the 10-year yield hitting its lowest level since September 2016 before rallying on the auto tariffs news.

Find out here how the Euro was affected by the last Eurozone debt crisis and how recent developments look worryingly similar

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES

News & Analysis at your fingertips.