BNY Mellon: The EUR and the Thorn in its Side
BNY Mellon: The EUR and the Thorn in its Side
By Neil Mellor, Senior Currency Strategist, BNY Mellon
By Neil Mellor, Senior Currency Strategist, BNY Mellon
Italian politics is to remain a thorn in the EUR’s side. And likely sources of relief appear to be in short supply.
The EUR has taken a close interest in the machinations of Italian politics and its impact on the BTP market since April.
The currency’s slide over the past week began with reports that Italy’s power brokers Di Maio and Salvini had forced their economy minister’s hand over budget plans that will now yield a deficit of 2.4% of GDP next year, as opposed to the 0.8% objective the government inherited.
BTP yields have recovered some ground on reports that a lower 2.1% deficit will be targeted by 2021