Euro Advances As Italy's League, 5-Star Head To Form Government
May 14 2018 - 1:38AM
RTTF2
The euro strengthened against its major opponents in the early
European session on Monday, as investors cheered latest
developments in Italy, where the leaders of Five Star Movement and
the League are heading to form a coalition government.
The two parties reached a deal on Sunday as a result of
last-ditch attempts to break a two-month impasse since the
inconclusive election in March.
Italian President Sergio Mattarella is set to hold formal talks
with the 5-Star leader Luigi Di Maio and League chief Matteo
Salvini today afternoon.
5Star leader Luigi Di Maio said that they have agreed about the
Prime Ministerial candidate, who will be "a politician and not a
technician".
The currency has been trading in a positive territory against
its major rivals in the Asian session.
The euro rose to a session's high of 0.8827 against the pound,
compared to last week's closing value of 0.8813. The next possible
resistance for the euro is seen around the 0.90 level.
The 19-nation currency firmed to a 10-day high of 1.1985 against
the greenback, after having fallen to 1.1937 at 5:00 pm ET. The
euro is likely to find resistance around the 1.21 region.
The European currency that closed Friday's deals at 130.55
against the yen advanced to an 11-day high of 131.30. On the
upside, 132.00 is likely seen as the next resistance level for the
euro.
Data from the Bank of Japan showed that Japan's producer prices
rose 0.1 percent on month in April - in line with expectations
following the 0.1 percent decline in March.
On a yearly basis, producer prices climbed 2.0 percent - again
matching estimates following the 2.1 percent gain in the previous
month.
The euro strengthened to a 5-day high of 1.5314 against the
loonie, 4-day high of 1.5884 against the aussie and near a 3-week
high of 1.7243 against the kiwi, from its early lows of 1.5260,
1.5817 and 1.7143, respectively. The euro is seen finding
resistance around 1.55 against the loonie, 1.60 against the aussie
and 1.74 against the kiwi.
Following a decline to 1.1937 against the franc at 5:00 pm ET,
the euro climbed to a weekly high of 1.1978. If the euro continues
its rise, 1.21 is possibly seen as its next resistance level.
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