Forex Top Team

EURUSD Plummets on Reports of Italian Bank Taxation

During the early London session, the Euro-Dollar pair extended its gains to the level of 1.1011 before reversing sharply, rapidly declining to today’s low of 1.0974. Similarly, the Euro-Yen pair also reversed from its high of 157.75 to briefly fall below the 157 yen level. The Euro’s rise against the Pound has also halted. Reports indicate that the Italian government has decided to tax banks’ surplus profits in a cabinet decision, leading to a decline in European stocks led by banking shares. Earlier in the Tokyo morning session, it was reported that credit rating agency Moody’s is considering downgrading six US banks, including US Bancorp, BNY Mellon, and State Street, making it a challenging day for banking shares.

 

Today, it is anticipated that the Euro may face a situation where upward momentum becomes difficult due to these developments.

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