Saturday , April 17 2021

Euro hits near two-week high on reports that Italy could reduce the deficit goal



The euro rose to its highest level in nearly two weeks on Monday on signs that Italy can cut its target for the budget deficit to meet the European Union, as well as a rebound in oil prices contributed to the improvement of risk sentiment.

Italy's ruling coalition may reduce the goal deficit in the next year to as low as 2 per cent of gross domestic product, to avoid disciplinary measures from Brussels, said two government source on Monday.

Could see some constructive headlines across the Atlantic, that tendency to rise at risk, so it is widely undercutting and the US dollar, said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

The euro initially rose to $ 1.1384, before sliding on the data, the German Business Morale fell more than expected in November, as the country's exporters to get caught up in the trade dispute between China and the United States. The euro was last down 0.12 percent to $ 1.1328.

Investors are focused on this week, speaking on Wednesday, Federal Reserve Chairman Jerome Powell and the minutes from the November 7-8 meeting of feds on Thursday for further guidance, how much more time the US central bank is likely to raise rates.

The slowdown in global economic growth has raised expectations that the Fed may stop its tightening cycle earlier than previously expected. It seems that there are preliminary indications from the Fed that they see the caution on the rise, so that if the Fed minutes and Mr. Powell, and play along with the increase in care, I think it will tend to believe that the Fed may opt a slower pace of rate hikes going forward, Manimbo said.

Trade tensions between the US and China, is also at the forefront of a US president Donald Trump and President of China Xi Jinping is scheduled to meet at the G20 meeting in Buenos Aires on November 30 to discuss trade issues in dispute.


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