Sep 26, 2022 2:19 PM +05:00 .
VOT Research Desk
Key Insights
Italy’s far-right will soon rule.
The EUR/USD pair makes a new two-decade low as the USD’s strength returns.
According to their most recent report, the German Ifo institute is the latest organization to issue a warning that the nation is likely to enter a recession in the upcoming quarters, with businesses displaying a significant degree of pessimism for the upcoming months.
The data of today fell short of expectations and the numbers of the month before. The Ifo report is just one of a number of German publications this week that will provide a much more precise picture of the state of the German economy.
After winning the election over the weekend, Giorgia Meloni, the leader of the far-right Brothers of Italy party, is set to take control of the country.
The EUR/USD bearish trend remains completely in control. Ms. Meloni’s right-wing alliance with the far-right parties League and Forza Italia has enough votes to control both the Senate and the Chambers of Deputies, according to the most recent figures from the BBC.
Due primarily to the strengthening of the US dollar, the Euro reached its lowest level against the dollar in over 20 years earlier in the session. The Euro as a currency remains weak and appears likely to fall further, despite the fact that the greenback is dictating market movements across the board. The low of 0.9550 today is likely to be re-rested soon, and any pullbacks are likely to be brief.
