7th November 2011
The ongoing crisis of confidence seen in Italy over the country's economic future has impacted on euro trading this morning (November 7th), resulting in a downturn.
Down by 0.8 per cent since the opening of trading today to $1.3688 from a high of $1.3839 during the Asian trading session, uncertainty in the market is serving to undermine forex trading confidence in the single currency as the day unfolds.
Jeremy Stretch, head of currency strategy at CIBC World Markets, commented: "Italy is too big to be safe and markets are fearful that political uncertainty will claim its second victim."
He added that Italian spreads are increasing all the time and this is creating a real risk factor for investors, especially as the market is still recovering from recent shocks.
Last week, Reuters reported the single currency pulled back from the brink of collapse after the Greek parliament voted against holding a referendum on the latest EU bailout package.
Posted by Andrew Johnston
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