Italy's Political Turmoil Causes EUR to Drop to 2018 Lows

Daily Update - 30th May 2018

Yesterday’s Markets

• European Central Bank’s Board Member, Ms. Yves Mersch Speech
• Bullish Japanese Retail Sales

Yesterday’s Focus

The crisis in Italy has placed a great deal of pressure on the euro, sending Europe’s common currency to its lowest levels against the USD in months. Italian bonds have similarly sold off amid the possibility of Europe’s third-largest economy staging a Brexit of its own.

 

Today’s Market

• USA Gross Domestic Product Price Index (Q1)
• Bank of Canada Interest Rate Decision
• Harmonized Index of Consumer Prices (YoY) (May)

Today’s Focus

The GDP figures are arguably the most important indicator of economic stability, and the US Federal Reserve will publish the Q1 data later this evening. Preliminary analysis indicates that the figure will remain unchanged at 2.3%.

The Statistical Office of the European Union will publish the Consumer Price Index which has been harmonized across all EU member states. The expected 0.4% increase, to a 1.8% from a previous 1.4%, is going to alleviate some of the downwards pressure that the EUR is facing due to the Italian political crisis.