EUR's Weakness Added as Netherlands and Italy Plunged into Crisis



The US dollar index has been rising from the low of 89.209 amid both the Democrats' victories in runoff elections and the soaring US 10-Year Treasury yield. As a result, EUR/USD saw a sharp decline from the peak of 1.2349 on January 6. Besides the strong DXY, other conditions unfavorable to the euro are also on the cards.

Before the Dutch election due March 17, the government of Holland's Prime Minister Mark Rutte collectively resigned. Ministers will stay on as a caretaker government until the general election. It emerged a child benefits scandal between 2013 and 2019, in which thousands of families were wrongly accused of child welfare fraud and told to pay the money back. Many of those affected were left to face financial ruin. In December 2020, a parliamentary report concluded the administrative mistake of tax authorities. Prime Minister Mark Rutte and his entire cabinet resigned to take responsibility for the scandal.

Meanwhile, Italy's former Prime Minister Matteo Renzi announced the resignation of two cabinet ministers, plunging the coalition government into collapse. The political crisis arose from the disagreement between Renzi and Prime Minister Conte on how to use the €200 billion in European Union recovery funds. Financial markets are worried that the country will ultimately hold a snap election. What's more, Germany's ruling Christian Democratic Union (CDU) chose Armin Laschet, premier of North Rhine-Westphalia, as their new leader. Mr. Laschet defeated conservative Friedrich Merz in a run-off vote by 521 votes to 466. Financial markets, however, had expected the result before because Laschet's political style is similar to that of Merkel.
The European Central Bank will hold its first rate-setting meeting of the year on Thursday (January 21). If Lagarde remains dovish and again shows concerns about the euro exchange rate as expected, EUR/USD will see enduring pressures this week. Technically speaking, the pair now has significant support at 1.1920, where a breach below will pave the way for further losses to 1.1603.
Latest News
-
How To Make Huge Profit Consistently From For ex
WikiFX | News 2021/2/26 6:38:39
-
The Most Dangerous Time to Trade
WikiFX | News 2021/2/26 8:30:11
-
Daily Forex Analysis - 26 February 2021
WikiFX | News 2021/2/26 5:41:50
-
HyperForex Taps Takeprofit to Extend Product Offerings
WikiFX | News 2021/2/27 2:51:44
-
Nasdaq's Worst Day in Nearly 4 Months as Yield Spike Triggers Tech Slump
WikiFX | News 2021/2/26 1:48:24
-
EUR/USD Forecast: On the Verge of a Bullish Breakout
WikiFX | News 2021/2/26 2:18:50
-
List of Forex Scams Newly Revealed in 2021!
WikiFX | News 2021/2/27 2:01:01
-
THE DARK SIDE OF ETHEREUM
WikiFX | News 2021/2/26 9:31:38
-
Altcoins bounce to new highs as Bitcoin price trades sideways under $50K
WikiFX | News 2021/2/26 9:51:14
-
AUD/USD: Nurses the biggest drop in five months below 0.7900 amid reflation fears
WikiFX | News 2021/2/26 1:48:20
United Arab Emirates Dirham
- United Arab Emirates Dirham
- Australia Dollar
- Canadian Dollar
- Swiss Franc
- Chinese Yuan
- Danish Krone
- Euro
- British Pound
- Hong Kong Dollar
- Hungarian Forint
- Japanese Yen
- South Korean Won
- Mexican Peso
- Malaysian Ringgit
- Norwegian Krone
- New Zealand Dollar
- Polish Zloty
- Russian Ruble
- Saudi Arabian Riyal
- Swedish Krona
- Singapore Dollar
- Thai Baht
- Turkish Lira
- United States Dollar
- South African Rand

United States Dollar
- United Arab Emirates Dirham
- Australia Dollar
- Canadian Dollar
- Swiss Franc
- Chinese Yuan
- Danish Krone
- Euro
- British Pound
- Hong Kong Dollar
- Hungarian Forint
- Japanese Yen
- South Korean Won
- Mexican Peso
- Malaysian Ringgit
- Norwegian Krone
- New Zealand Dollar
- Polish Zloty
- Russian Ruble
- Saudi Arabian Riyal
- Swedish Krona
- Singapore Dollar
- Thai Baht
- Turkish Lira
- United States Dollar
- South African Rand
- Amount
- United Arab Emirates Dirham
- Available
- -- United States Dollar