The euro came under selling interest yesterday, following reports that a potential coalition government, between Italy’s Five Star Movement and Northern League, plans to ask the ECB forgiveness of Italian debt. Tonight, during the Asian morning Friday, Japan’s CPIs are forecast to have slowed, adding move validity to our view that the BoJ has a long way to go before it starts thinking a QE exit.
Euro Tumbles on Italian Political Uncertainty
The euro underperformed all but one of the other G10 currencies on Wednesday. The only currency against which it did not slip was the US dollar. The main gainers against the common currency were the commodity currencies AUD, CAD and NZD, while those which gained the least were CHF, JPY and SEK.
The euro came under strong selling pressure following reports that a potential Italian coalition government, between the anti-establishment Five Star Movement and the far-right Northern League party, plans to...
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