The FX market continues to be driven by the Italian and Spanish political developments; however, the risk-off sentiment has eased somewhat as investors take a step back to re-evaluate the situation.
EUR/USD is up 0.50% this morning as it climbed back towards 1.16 after having reached 1.1510, the lowest level since July 2017. European equities, and more specifically Italian ones, were better bid on Thursday morning with the FTSE MIB rising 0.80%, while the STOXX 600 edged slightly higher by 0.05%. Italian treasuries were also better bid with the 2-Year yield easing to 2%, while the 10-Year one stabilised around 3%.
Against the backdrop of rising euroscepticism in the Swiss franc had a bumpy late European session yesterday as USD/CHF hit 0.9983 before falling 1.33% to 0.9851. The currency pair end up the day around 0.99. EURCHF fell as low 1.1368 before bouncing back to 1.1439. Given the sharp depreciation of the euro of the last few days, a period of consolidation would more than reasonable. Even though investors have taken a more risk-on approach on the FX market, the sentiment on the equity is still mostly negative.
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments.