The Euro has enough time to respond to all news. Overview for 05.12.2016
05.12.2016
On Monday morning, the main currency pair updated its multi-month low, but was able to recover later in the afternoon.
During the first week of December, the EUR/USD pair is exceptionally mobile, against its own will of course. During the Asian trading session, the pair was being sold actively as the Euro updated its low at 1.0506, the bottom over the last 21 months. Later, the pair quickly recovered after the Eurozone published the Retail Sales reports.
So, at first let’s talk about the most important news. Last weekend, there was a referendum in Italy, which ended not well for the acting government. The country’s population voted against the constitutional reform and preferred to keep everything the way it was. It means that Italians were against efforts of the country’s Prime Minister, Matteo Renzi, who has already resigned today. And now the most interesting part: the president will do his best to preserve stability in the country, otherwise banks will have a bad time. In other words, he is going to start a dialogue with the Opposition and come to partial decisions.
Nevertheless, at some point of time the responses showed that the composition of the parliament will have to be changed and made closer to the common-European approaches to legislation and voting. The Italy story is just beginning, the most interesting part lies ahead.
The daily statistics from the Eurozone indicated that the Retail Sales in October added 1.1% m/m (+2.4% y/y) against expectations of 0.8% m/m (+1.8% y/y). These reports helped the Euro to eliminate its morning decline and recover much faster.
RoboForex Analytical Department
During the first week of December, the EUR/USD pair is exceptionally mobile, against its own will of course. During the Asian trading session, the pair was being sold actively as the Euro updated its low at 1.0506, the bottom over the last 21 months. Later, the pair quickly recovered after the Eurozone published the Retail Sales reports.
So, at first let’s talk about the most important news. Last weekend, there was a referendum in Italy, which ended not well for the acting government. The country’s population voted against the constitutional reform and preferred to keep everything the way it was. It means that Italians were against efforts of the country’s Prime Minister, Matteo Renzi, who has already resigned today. And now the most interesting part: the president will do his best to preserve stability in the country, otherwise banks will have a bad time. In other words, he is going to start a dialogue with the Opposition and come to partial decisions.
Nevertheless, at some point of time the responses showed that the composition of the parliament will have to be changed and made closer to the common-European approaches to legislation and voting. The Italy story is just beginning, the most interesting part lies ahead.
The daily statistics from the Eurozone indicated that the Retail Sales in October added 1.1% m/m (+2.4% y/y) against expectations of 0.8% m/m (+1.8% y/y). These reports helped the Euro to eliminate its morning decline and recover much faster.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.