The Euro has been struggling in the last few weeks as the market awaits the latest news on Italy. It doesn’t take too much to unsettle investors nerves over the prospect of the Eurozone’s third-largest economy pursuing economic and political policies which could destabilise the region. For now, the weakness has been contained but the questions are not resolved and the Euro could struggle in the future.
Investors are closely monitoring the outlook on the markets as we await fresh news over the pending government and their plans. If you look at the history of Italian politics it is representative of coalitions who struggle to pass too much policy. The new government, however, seems united in its rejection of the values which have so far underpinned a stronger Euro in recent times.
By seeking to possibly set Italy on a path to leaving the Euro and also increasing the welfare spend, the Italians are potentially setting themselves on a course which may weaken the Euro. The Euro is weaker because of these prospects, there is also concern that in the Eurozone the economic data is not quite up to scratch.
The key news in June will be the ECB (European Central Bank) interest rate decision on the 14th, clients looking to the GBPEUR pairing should also be tracking the UK interest rate decision on the 21st, as well as the EU SUmmit on the 28th June.
The Euro could weaken in the future so clients looking to buy or sell might wish to be making some keener plans over the best strategy moving forward to help manage their exposure to this often volatile currency.
Thank you for reading and to learn more about Euro rates and the future forecast, please contact me Jonny on firstname.lastname@example.org