Tuesday , June 28 2022

The euro strikes nearly two weeks high on reports that Italy can reduce the deficit goal



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The euro climbed to the highest level in nearly two weeks on Monday on the signs that Italy could reduce its budget deficit target to meet the European Union and that a rebound in oil prices has helped improve the sense of risk.

Italy's government coalition could reduce its deficit target next year to 2% of gross domestic product to avoid disciplinary action in Brussels, government sources said on Monday.

There have been some constructive titles in the Atlantic, which are a sense of risk, which means that it generally undermines the US dollar, said Joe Manimbo, senior analyst at Western Union Business Solutions in Washington.

The first euro climbed to 1.1384 dollars before slipping data that the morale of German businesses dropped far beyond expectations in November, as exporters of the country are trapped in a trade dispute between China and the United States. In the last quarter, the euro fell by 0.12% to $ 1.1328.

Investors focus this week on Wednesday's speech by Federal Reserve Chairman Jerome Powell and minutes from Thursday's 7-8 November meeting for additional guidance on how often the US Central Bank

The decline in global growth has generated expectations for the Fed to stop its tightening cycle earlier than expected. Apparently, there are some provocative signs from the Fed that they have a growing caution, so if the Fed and Mr Powell minutes play extra caution, I think there would be a tendency to suggest that the Fed could opt for a slower rate of rate rises to the front, Manimbo said.

US-China trade tensions are also at the head of President S. Donald Trump and Chinese President Xi Jinping, who will meet at a G20 meeting in Buenos Aires on November 30 to discuss controversial commercial issues .

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