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The euro has gained against the dollar today because of signs indicating that Italy could reduce its budget deficit target in order to satisfy the European Union. In addition, the rebound in oil prices has contributed to a heightened sense of risk.
The Italian government coalition could reduce the budget deficit target of next year to 2% of the gross domestic product in order to avoid disciplinary sanctions on the part of Brussels, announced today. two government sources.
The euro rose despite data showing that German corporate sentiment had fallen more than expected in November, as the country's exporters were caught in a trade dispute between China and the United States.
The euro was up 0.15% to 1.1307 USD in the afternoon.
Overall optimism with the euro is also reflected in the latest weekly positioning data, as long dollar positions fell slightly for the week ending November 16th.
Net weekly positions in the euro rose their biggest weekly margin in more than two months this week.
Investors are focusing this week on Wednesday's speech by Federal Reserve Chairman Jerome Powell and the minutes of the November 7-8 Fed meeting on Thursday to indicate how often it is likely that the Fed increases rates.
The slowdown in global growth has raised hopes: the Fed could end its tightening cycle sooner than expected.
Trade tensions between the United States and China are also in the forefront with US President Donald Trump and Chinese President Xi Jinping to meet at a G20 meeting in Buenos Aires on November 30 to discuss controversial trade issues.
Pound Steadies
Sterling made some gains and kept them after Britain signed an agreement with the European Union at the block's exit.
The currency gains were held back by doubts about Prime Minister Theresa May's ability to secure the deal through a divided parliament.
While European leaders subscribe to the May plan for future relations between Britain and the bloc, Sterling's traders are focusing on a parliamentary vote on the deal likely to take place in mid-May. December.
May seeks to seduce the critics of his conservative parties and the opposition, but the chances of seeing it are opposed to the agreement approved on all sides in Brussels, including the DUP, which supports his minority government.
Brexit negotiations and political uncertainties in Britain remain the main drivers of the pound and many badysts are cautious about its outlook.
Recent positioning data suggests that hedge funds have begun to unwind large short positions on the pound sterling as hope grows that Britain manages to negotiate a good Brexit.
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