18 Feb 2014
Flash: EUR immune to Italian effervescence so far - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observed that recent political developments in Italy have not affected the EUR.
Key Quotes
"The latest political developments in Italy remain in focus with President Napolitano offering Matteo Renzi, leader of the centre-left Democratic party, a mandate to form the next government. Matteo Renzi has laid out an ambitious reform agenda for his first 100 days in office as he seeks to form a workable coalition government."
"Within the first month he plans to move ahead with proposed changes to the constitution and a new electoral law, which would be followed by reforms to the labour market in March, to public administration in April, and to the tax system in May. Investors are encouraged by the ambitious reform agenda with the yield on the 10-year Italian government bond falling towards 3.6%."
"However, it remains to be seen how effectively the next coalition government will be able to pass the required legislation. The euro is deriving modest support from the ongoing narrowing in the euro-zone’s sovereign credit risk premium."
Key Quotes
"The latest political developments in Italy remain in focus with President Napolitano offering Matteo Renzi, leader of the centre-left Democratic party, a mandate to form the next government. Matteo Renzi has laid out an ambitious reform agenda for his first 100 days in office as he seeks to form a workable coalition government."
"Within the first month he plans to move ahead with proposed changes to the constitution and a new electoral law, which would be followed by reforms to the labour market in March, to public administration in April, and to the tax system in May. Investors are encouraged by the ambitious reform agenda with the yield on the 10-year Italian government bond falling towards 3.6%."
"However, it remains to be seen how effectively the next coalition government will be able to pass the required legislation. The euro is deriving modest support from the ongoing narrowing in the euro-zone’s sovereign credit risk premium."