Euro is struggling today as Italian politics turn ugly. The 17-nation currency is mostly lower today, dropping against most of its counterparts. The currency that isn’t gaining against the euro right now is the US dollar, which is facing political issues of its own right now.
Political tensions ratcheted up another notch today with Silvio Berlusconi calling for new elections, and pulling his ministers out of government over the weekend. Italy’s prime minister, Enrico Letta, is hoping that a confidence vote later this week can stabilize the situation. However, with concerns about Italy weighing on the eurozone, the 17-nation currency is struggling a great deal.
In fact, the whole Forex market is in a risk-off situation, between the eurozone and the United States and the related political turmoil. Political issues in the United States, with a government shutdown very possible, are weighing on the US dollar. As a result, the greenback is the only currency today that the euro has been able to hold its own against.
Risk appetite is not even in sight right now, with Forex traders looking for safe haven.
At 14:37 GMT EUR/USD is up to 1.3530 from the open at 1.3494. EUR/GBP is holding relative steady at 0.8359. EUR/JPY is down to 132.51 from the previous close at 132.84.
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