Italian budget issue and Brexit keep affecting euro and sterling

Posted 22 October, 2018

The euro and sterling reportedly showed no strong changes against the US dollar. At the same time, the market is waiting on Monday for new reports about the Brexit process and Italy's budget, especially after a strong negative stance of the EU towards the draft.

The US Dollar Index decreased to 95.44 on Monday. The greenback stays generally firm with slight fluctuations vs the majors. The rates were within short range amid the current tensions between Saudi Arabia and the Western world as well as trade disputes and global economic uncertainties.

The euro-to-US dollar rate reached 1.1515 today after sliding to $1.1510 early Monday. At the same time, the sterling weakened to 1.3050 vs the greenback.

The euro and sterling are still depressed by the reports regarding the Italian budget and the Brexit process.

Specifically, last week the European officials notified the Italian government about the fact that the proposed draft budget violated all requirements of the EU, adding that Italy had to make comments on this matter till October 22.

As for the sterling, the British currency got stronger last Friday driven by the news reports that Theresa May might even back down from the key Brexit point to get a Brexit deal with the EU.

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22 October, 2018 13:43

← National crypto not planned by Bank of Japan

Masayoshi Amamiya, Bank of Japan Deputy Governor, doubts about central banks' cryptocurrencies. During the recent meeting, Masayoshi Amamiya stated that such cryptos hardly can boost the effectiveness of the monetary policy. He stated the digital coins could show good performance only after central bank completely get rid of fiat cash. Meanwhile, some market experts believe that the cryptos issued by the central banks can help countries to cope with the "zero lower bound" (period when they have no means to boost the economy seeing zero interest rates). In addition, they think that coins can bolster consumer demand. Masayoshi Amamiya said that BOJ has no plans to issue its own cryptocurrency, that would be widely used by people as a payment means, citing that the switching of the effective currency to central banks' cryptos would bring many challenges and problems, whereas people associate cryptos with investment speculations and price volatility.

National crypto not planned by Bank of Japan

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19 October, 2018 16:09

Binance considers new stablecoins for listing →

Binance, one of the leading cryptocurrency exchange headquartered in Hong Kong, is said to consider adding new stablecoins following those three stablecoins listed earlier. These moves should not be related to the lost confidence in USDT stablecoin which is no longer pegged to the US dollar staying below $1. However, the platform expects the situation with Tether to back to normal, so they do not plan to stop supporting this coin. For now, the exchange is reportedly considering all available stablecoins. The potential coin for listing is Gemini Dollar run by well-known Winklevoss twins. Notably, these assets also lost fiat pegging, though posted strengthening, unlike Tether coin.

Binance considers new stablecoins for listing
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