This is the third article in our blog series on what businesses need to know about key global currencies in the second half of 2018. In this article, we'll cover economic and political events that present both advantages and obstacles for the Euro, as well as what businesses can expect of the European currency in the 2nd half of 2018.
Is there EMU turmoil on the horizon? The odds are beginning to stack up.
Italy’s pro-EU Renzi stood down as PM earlier this morning after his referendum for Italian constitutional change was resoundingly beaten by a record turnout Sunday. This has paved the way for another general election and the possibility of an anti-EU party win for the fourth largest economy in the eurozone.
A missed opportunity for Donald Trump at last night’s final Presidential debate may well be supporting US futures ahead of the open on Thursday, while European markets are currently treading water ahead of the ECB monetary policy decision and press conference.
Are investors back to trading risk? U.S markets started this week under modest pressure after oil producers failed to reach a deal on an output freeze in Doha over the weekend. Naturally, the energy complex started the week gapping lower, along with the commodity sensitive bloc of currencies. Nevertheless, bargain basement hunters did appear mid-session yesterday and eventually pushed the Dow Jones Industrial average to surpass the +18k psychological mark for the first time in nearly a year.