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LONDON (Reuters) – The euro rebounded on Wednesday after reports that Italy may be short-lived.
FILE PHOTO: A two Euro coin is pictured next to an old English pound note in an illustration taken March 16, 2016. REUTERS / Phil Noble / Illustration
Uncertainty surrounding Italy's debt, tax plans and future ties with Europe and other countries.
The euro has suffered as a result, and it has been suggested that Italy should re-adopt a national currency, prompting a broad-sell-off market.
The single currency in the United States of America, United States of America
"That the Italian government is trying to get its share of the euro-positive reaction," said Thu Lan Nguyen, a FX strategist at Commerzbank AG in Frankfurt.
"The devil is in the details. The euro's recovery will only continue if the new fiscal plans are also possible, "she said.
The euro was up 0.3 percent at $ 1.1578 following its descent to $ 1.1505 overnight, its lowest since Aug. 21.
Italian Prime Minister Giuseppe Conte will meet on the budget around 1100 GMT on Wednesday.
Other analysts are less sanguine about the euro.
"When was the last time you heard of G8 currency?" Said CMC Markets' chief analyst Michael Hewson.
"The fact that [Italian] Politicians feel the need to constantly reiterate this line to a fundamental weakness in the heart of the single-currency area, "he said.
The dollar index against a basket of six major currencies was 0.2 percent lower at 95.313 after scaling 95.744 overnight, its highest since Sept. 4.
The yen and the Swiss francs, both safe-haven currencies, and the dollar.
"U.S. "This data is going to be a chance to see the Fed's views," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
Ishikawa said the dollar has benefited from the recent development of the euro. The dollar index has advanced about 1.4 percent since the Fed.
The pound was 0.1 percent lower at $ 1.2995 after dropping on Tuesday to $ 1.2941, its weakest since Sept. 10, as conflicts over Prime Minister Theresa May's Brexit plan escalated.
The Australian dollar was down 0.3 percent at $ 0.7165 and within touching distance of a two-week $ 0.7162 brushed on Tuesday.
(This story has been refiled to fix typo in third paragraph.)
Additional reporting by Shinichi Saoshiro in Tokyo; editing by Larry King
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