Euro Climbs On Hopes Of Italian Budget Compromise
November 25 2018 - 11:37PM
RTTF2
The euro appreciated against its major counterparts in early
European deals on Monday, as news that Rome is willing to make
compromises on its deficit target for 2019 lifted up investor
sentiment at the start of trading week.
Media reports showed that Italian government is mulling a
deficit reduction of upto 2 percent of gross domestic product from
the draft budget goal of 2.4 percent of GDP.
In an interview with the Italian newswire Adnkronos on Sunday,
Italian Deputy Prime Minister Matteo Salvini suggested that the
government is open to tweak its deficit goal for next year.
"I think nobody is fixated on this, if there is a budget which
makes the country grow, it could be 2.2 percent or 2.6 percent," he
said.
Investors await the developments on the U.S.-China trade front.
U.S. President Donald Trump and Chinese President Xi Jinping are
expected to meet on the sidelines of the G20 summit in Buenos
Aires, Argentina, at the end of the week.
Survey data from the Munich-based institute showed that
Germany's Ifo business confidence dropped more-than-expected in
November.
The Ifo business confidence indicator fell to 102 from 102.9 in
October, which was revised from 102.8. Economists had expected a
reading of 102.3.
The currency has been trading higher against its major
counterparts in the Asian session.
The euro rose to 1.1384 against the greenback, from a session's
low of 1.1327 touched at 8:30 pm ET. If the euro rises further,
1.15 is seen as its next resistance level.
Having dropped to 127.93 against the yen at 6:30 pm ET, the euro
reversed direction and appreciated to 128.92. The euro is likely to
find resistance around the 131.00 level.
The single currency reached as high as 1.1337 against the franc,
up from a low of 1.1299 hit at 5:30 pm ET. The next possible
resistance for the euro is seen around the 1.15 mark.
The euro reversed from an early session's low of 0.8836 against
the pound, rising to 0.8869. On the upside, 0.90 is possibly seen
as the next resistance level for the euro.
Figures from the UK Finance showed that U.K. mortgage approvals
for house purchase rose to its highest level in five months in
October.
The number of mortgage approvals for house purchase climbed to
45,289 from 37,348 in September. The figure was the highest since
June, when approvals were 47,175.
The euro edged up to 1.5014 against the loonie, after falling to
1.4975 at 10:15 pm ET. The euro is seen finding resistance around
the 1.51 level.
At 9:00 am ET, European Central Bank President Mario Draghi will
testify about the economy and monetary policy before the European
Parliament Economic and Monetary Affairs Committee in Brussels.
Bank of England Governor Mark Carney will discuss the new book
by Alan Greenspan and Adrian Wooldridge: "Capitalism in America: A
History" at the Policy Exchange event in London at 1:30 pm ET.
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