EURUSD remains under pressure for a second day in a row on Tuesday as the sentiment around the common currency remains fragile since the start of the week. The pair failed to settle above the 1.12 level once again and had to retreat to daily lows around 1.1175.
Dollar sees a recovery against major rivals, which coupled with the EU-Italian budget woes turned the euro on the defensive. The European Commission is considering proposing a disciplinary procedure for Italy over its failure to rein in debt. By the way, Italy may incur a penalty of up to $4 billion.
In turn, Italian Deputy Prime Minister Matteo Salvini indicated he’ll push back against EU demands when crafting his next budget. So the appeal of the common currency may decline further should the situation escalate further in the days to come.
Another source of euro weakness is the market concerns over the ongoing US-China trade war. Besides, EU-US trade relations remain tense as well. Against this backdrop, EURUSD could target the 1.1150 support area and then focus on the 1.11 handle.
Dollar sees a recovery against major rivals, which coupled with the EU-Italian budget woes turned the euro on the defensive. The European Commission is considering proposing a disciplinary procedure for Italy over its failure to rein in debt. By the way, Italy may incur a penalty of up to $4 billion.
In turn, Italian Deputy Prime Minister Matteo Salvini indicated he’ll push back against EU demands when crafting his next budget. So the appeal of the common currency may decline further should the situation escalate further in the days to come.
Another source of euro weakness is the market concerns over the ongoing US-China trade war. Besides, EU-US trade relations remain tense as well. Against this backdrop, EURUSD could target the 1.1150 support area and then focus on the 1.11 handle.