The euro and the pound are approaching the lows of the year against the dollar

Political and economic uncertainties accentuate the fall of European currencies. The euro endangers 1.14 USD and the pound loses 1.30 USD.

The confrontation between Italy and Brussels and the uncertainties related to the drift of Brexit negotiations are not the only obstacles. slow the evolution of European currencies in their crossings with the dollar. The session today reactivates another area of ​​concern: the fear of a deceleration more pronounced than expected

The macroeconomic agenda had recently lost importance in the markets, due to uncertainties in the political sphere. Today's session included the publication of data on manufacturing activity in the euro area and its figures reinforce warnings about the extent of the economic slowdown.

Germany's PMI index slowed to reach its lows. years, with a figure well below expectations, while manufacturing activity in France dropped to its lowest level in 25 months.

The anxiety generated by these data is in full "officialization". the confrontation between the Italian Government and the European Commission.

Brussels yesterday rejected the Budgets for 2019 published by the executive of the coalition between the Five-Star Movement and the Northern League.

This unusual refusal however does not seem to change the course of the government of Italy, sign your pulse in Brussels. Matteo Salvini made it clear this morning that he would not change his budget to reduce the deficit target of 2.4% currently, even though the European Commission has sent "12 letters".

The euro at 1.14 USD

Political and economic pressures are accentuating the decline of the euro on the eve of the meeting of the European Central Bank. The scale of the Italy-Brussels challenge calls into question the conditions envisaged for the ECB's first rate hike, expected before September 2019

The Community currency is extending its declines until it jeopardizes the level of the US dollar 1.14, far from the US $ 1,155 with which the week started. Its rating is similar to the lows of the year recorded on August 15, when it fell to $ 1,1301.

The currency of the Community drops by about 2% this month and is already close to 5% loss so far this year when it crosses the dollar. The corrective of the annual highs reached in February is close to 9%.

The lowest of the pound sterling at 1.30 USD

The declines of the euro also reach the price of the pound sterling. The week started at the limit of 1.31 USD, but today 's session is strengthening below the USD 1.30 barrier.
At these levels, the pound loses more than 4% against The dollar reaches 1.1437 US dollars on April 17, which is already 10% of the dollar reached since the beginning of the year.

The lack of significant progress in negotiations on the United Kingdom's exit process from the European Union raises fears of a lack of agreement leading to a "chaotic Brexit".