Forex – euro retreats after that Carlo Cottarelli has been appointed prime minister


The euro declined after that Carlo Cottarelli has been appointed prime minister

Investing.com – The euro fell on Monday while the u.s. dollar was rising, while the political uncertainty persists in Italy and the former director of the IMF, Carlo Cottarelli has been appointed Italian prime minister.

The EUR / USD fell to a low of six months of 1,1619 at 10:59 AM ET (14:59 AM GMT), the lowest level since 8 November.

The single currency has been subject to selling pressure renewed, while investors digest the prospect of new elections in Italy.

The euro had risen earlier in the day-to-1.1733 after that the populists italians had abandoned their attempt to form a coalition government after president Sergio Mattarella has blocked the appointment of a minister of finance eurosceptic.

The former director of the IMF, Carlo Cottarelli, has been invited to form a government by Mattarella on Monday after the president was rejected by the minister of finance, but new elections should take place at the beginning of next year.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, stood at 94,38, the strongest level since mid-November thanks to the weakness of the euro.

Trade volumes are expected to remain low on Monday, markets in United States and the United Kingdom being closed for the holidays.

The dollar was down against the yen, with a decline of the USD / JPY 0.03% to 109.34, after having hit a high at 109.84.

The british pound was on the rise, but has fallen in relation to its highest previous, with the GBP / USD up 0.03% at 1.3299.

Elsewhere, the australian dollar remained steady, with the AUD / USD to 0,7547, while the NZD / USD has jumped from 0.38% to 0,6939.

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