The Italian dollar appreciates as the Italian budget drama weighs on the euro

The US dollar strengthened Monday against most of its major rivals to start the week.

ICE US Dollar Index

DXY, + 0.00%

a measure of the bank note against six major counterparties, strengthened to 95,739, up 0.2%. The index reached an intra-day high of 96.03.

L & # 39; euro

EURUSD -0.0174%

which represents more than 50% of the popular index, traded at 1.1492 USD, against 1.1523 USD Friday, the political concerns in Italy having weighed on the common currency. Earlier during the New York session, the euro traded at $ 1.1451, its lowest level in seven weeks.

"The euro remains under pressure at the start of the week as Italian government bond yields have risen again, resulting in a gap of nearly 300 basis points between the 10-year construction / bund and weakening. from the euro, "said Nick Cawley, an analyst at DailyFX. . Three hundred basis points equals 3 percentage points.

"The latest rise in Italian yields reflects the European Commission's growing concern that Italy's budget is a" source of worry "that raises fears of a confrontation between the two. have doubled since the beginning of May and should test 4.00% in the short term. "

Further reading: Bond yields in Italy rise as investors prepare for budget confrontation

Lily: Here are the stocks most sensitive to rising bond yields

After jumping above $ 1.31 on Friday, the pound sterling

GBPUSD, -0.0153%

gave up its gains and traded at $ 1.3092 against $ 1.3115 Friday night in New York.

Meanwhile, the Canadian dollar

USDCAD, + 0.0772%

trades 0.2% against the dollar as falling oil prices weigh on the commodity-dependent currency. The loonie loses five days in a row against its southern neighbor and oil has dropped for a third consecutive session. The last dollar bought was CAD 1.2961 against CAD 1.2942 on Friday night.

The Japanese yen was the only G-10 currency to outperform the dollar on Monday morning. The yen advanced in a context of widespread equity weakness led by China, where Shanghai and

SHCOMP, + 0.17%

and Shenzhen

399,106, + 0.54%

finished down more than 3.5%. A dollar last bought ¥ 113.02, compared to ¥ 113.71 on Friday.

Brazilian real

USDBRL, -0.0503%

Jair Bolsonaro, candidate of the far right, won 46% of the vote in the first round of the presidential election. The man dubbed the Brazilian Donald Trump is now the favorite to win the final vote on October 28th.

This evolution in the real world has led industry players to adopt a momentum indicator. "The drop in July / August was in the order of 3.6870 in punctual terms and it is the next level to watch with 200 days of DMA just below, around 3.6051 after that ", wrote Brad Bechtel, managing director of Jefferies LLC, referring to long-term currencies. 200-day moving average.

Lily: Chinese equities plummet 3% after holiday, even as central bank takes action

Elsewhere, the fall of the Australian dollar

AUDUSD, -0.0141%

has fallen for the moment with Australian trade at $ 0.7067, compared to $ 0.7051 on Friday.

Further reading: Why is the Australian dollar the biggest loser of trade between the United States and China?

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