Sentiment has been dominated in recent times by political turmoil in Italy, which took another twist at the weekend following the breakdown in the coalition between the Five Star Movement and the League.
Risk remained on the table in the first half of European session. Safe haven gold and yen fell while stock indices pushed higher with the German DAX printing a new high for the week and reached its best level since early February.
Since the beginning of the month all battles between bulls and bears run in a fairly narrow area, which unfortunately doesn’t create good investment opportunities. In today's alert, we looked at the broader perspective of EUR/USD and the USD Index itself.
Market optimism over a “soft Brexit” outcome sharply deteriorated on Wednesday, after the European Union published a draft withdrawal agreement calling for Northern Ireland to stay in the customs union.