A notable casualty | 01 tháng Tám 2022

01 tháng Tám 2022, EUR/USD

EURUSD trading plan:

The era of negative rates is over and the governing council is likely to fully take the euro zone into positive rates at its next quarterly economic review on Sept. 8. The collapse of Italian Prime Minister Mario Draghi's coalition government last week, with national elections now expected in early October, has concentrated the focus even more on the sustainability of more indebted European countries' borrowing and economic predicament. The 10-year yield spread of Italy over Germany widened by more than 20 basis points on Thursday to over 230 basis points, close to the four-year high reached in June. With Italian 2-year yields reaching 2%, and 3-year yields at 2.5%, the nation is a far cry from the sub-zero funding levels it enjoyed as recently as earlier this year.

Investment idea: sell 1.0258 and take profit 1.0150.

David Johnson
Analyst of «FreshForex» company
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