The risks of a collapse of the Draghi government | 15 Julio 2022

15 Julio 2022, EUR/USD

The risks of a collapse of the Draghi government

EURUSD trading plan:

Italy's president rejected the resignation of Prime Minister Mario Draghi on Thursday after a day of political drama that threatened to bring down a national unity government that has been in office less than 18 months. Draghi, the former European Central Bank president, announced he was to resign on Thursday after the 5-Star Movement, a coalition party, failed to back him in a confidence vote over his plan to combat soaring prices. Mattarella asked Draghi, who is an unelected technocrat, to address parliament to get a clearer picture of the political situation. The risks of a collapse of the Draghi government rippled through financial markets where Italian bond yields rose sharply, indicating investors demanding a higher premium to hold its debt, and shares fell to their lowest levels since late 2020.

Investment idea: sell 1.0055 and take profit 0.9995.


The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
David Johnson
Analyst of «FreshForex» company
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