Forex Marketz Daily Forex News – Fully Markets Update
The dollar firmed this morning against major peers in its basket of currencies. The euro retreated to a new five month low. Investors are concerned with political developments in Italy. There are concerns that these developments could disrupt the euro area even further and sapped strength from the common currency.
This morning the EUR/USD was higher. This benchmark Forex market traded up by 0.05 percent at $1.1813. This comes after falling, during the North American trade session, to $1.1763. This was the euro currency’s lowest price point since December 18.
Then U.S. dollar index, which measures the USD against six Forex partners, was down a tad. It last stood at 93.298. The dollar gained ground on Wednesday to 93.632. This was the greenback’s highest price point since December 19.
In other currency pairs, the AUD/USD Forex market was flat at $0.7514. During the North American session it gained 0.6 percent. The Aussie was supported by a rise in commodities like copper.
The USD/JPY Forex market was flat as well. This Forex market last fetched 110.380 yen. A break above 110.450 would take the USD/JPY pair to its highest price level since February 2.
Other commodity currencies made gains as equities recovered. On Wednesday stocks fell as Treasury yields spiked above three percent.
Euro Traders respond to Political Uncertainty in Italy
Looking at headline, traders were a bit nervous coming out of Italy. The populist parties are wrangling forge a common platform. This is a bid to head the next government. This has hurt the common Eurozone currency.
The EUR fell lower. It hit a five month on news that Italy’s anti-establishment 5 Star Movement along with the anti-immigrant party called the League will cause some waves. They could ask the European Central Bank to forgive €250 billion of debt. These parties are looking to form a coalition agreement.
The common currency is also under pressure from the USD. This week, the yield advantage has strengthened for thee dollar, as U.S. yields broke above the three percent mark. They are at a seven year high.
