OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: Political quagmire abates in Italy – Deutsche Bank

FXstreet.com (Barcelona) - Perhaps the most significant news of note this weekend was the re-election of Giorgo Napolitano as President of Italy. Napolitano becomes the first Italian president to be given a second seven-year term after reluctantly accepting a plea from the Democrat Party along with caretaker PM Mario Monti and Silvio Berlusconi to stand again.

“Ultimately we think that markets will react positively, even if Napolitano reflection is a symbol of the fragmentation within the Italian political system. On the positive side, the market should be relieved that the risk of elections in the summer should be avoided and that finally a new government can be formed.” suggests Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

Indeed, they see Napolitano's re-election as an implicit commitment by the center-left, center-right and Monti's Civic Alliance to support the formation of a grand-coalition government sponsored by Napolitano. On the negative side, the Presidential election process sends a message of political fragmentation.

Forex: EUR/USD rebound limited to 1.3040 after EMU and US data

The EUR/USD was able to find support at 1.3016 low at its down move on the New York opening after the release of US Chicago Fed data and ahead of EMU confidence and US existing home sales. The rebound reached 1.3040 after the publication of an upside surprise for the Eurozone and a disappointing US housing figure.
Read more Previous

Merkel wants EU countries to accept that Europe “has the last word”

German Chancellor Angela Merkel, who took part in an event organized by Deutsche Bank in Berlin on Monday, said that Eurozone Member States should be “prepared to cede control over certain policy domains to European institutions if the bloc is truly to overcome its debt crisis”, as Reuters reports.
Read more Next
Start livechat