Forex – euro reverses its gains due to concerns about Italy


© Reuters. Euro reverses its gains due to concerns about Italy

Investing.com – The euro reversed its early gains on Monday, dropping to a low of six months, while new concerns over political instability in Italy have lowered the single currency to new elections.

The EUR / USD reached a low of 1,1641 at 06:30 pm ET (10:30 AM GMT), the lowest level since the 13th of November, after having increased up to 1.1733 earlier.

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

The euro had peaked earlier after the populists italians have abandoned their attempt to form a coalition government, while president Sergio Mattarella has blocked the appointment of a finance minister the euro-skeptical.

Investors feared that the coalition do not endanger the belonging of Italy to the euro area.

But the president’s decision could cause a constitutional crisis and the country could again go to the polls later this year.

The euro lost the gains made against the yen, with the EUR / JPY to 127,31, near the hollow of 127,13 reached Friday.

The dollar index, which measures the strength of the dollar against a basket of six major currencies, has reached 94,23, the strongest level since mid-November thanks to the weakness of the euro.

The dollar was steady against the yen, with the USD / JPY at 109.36, after having reached a highest daily 109.84.

The american president Donald Trump said Sunday that an american team was entered in North Korea to prepare for a summit between himself and north Korean leader Kim Jong One.

The book has grown, with GBP / USD rising 0.20% to 1,3322.

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

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