Euro - Dollar pair after ECB session ... not so good news
The ECB meeting has marked a rise in interest rates of 0.5 points. This has caused the EURO-DOLAR pair to rise to 1.0227.
Although it will make the EURO stronger, there is economic uncertainty and complexity of the current European situation very difficult for it.
In addition to no measurable productivity gains in recent times, the Italian community owes more than 700bn Euros to the ECB, and the ECB still has to provide 200bn for the Covid recovery fund. The current government of Italy will soon go into elections, whose polls show a rise and possible election of the right-wing side.
This same side has policies against the EURO and the Eurozone. This makes the ECB's ability to act very limited, since Italy's exit from the EU could cause the bankruptcy of the ECB and the Bundesbank.
Our perspective for the EURO-DOLAR pair is bearish.
Although it will make the EURO stronger, there is economic uncertainty and complexity of the current European situation very difficult for it.
In addition to no measurable productivity gains in recent times, the Italian community owes more than 700bn Euros to the ECB, and the ECB still has to provide 200bn for the Covid recovery fund. The current government of Italy will soon go into elections, whose polls show a rise and possible election of the right-wing side.
This same side has policies against the EURO and the Eurozone. This makes the ECB's ability to act very limited, since Italy's exit from the EU could cause the bankruptcy of the ECB and the Bundesbank.
Our perspective for the EURO-DOLAR pair is bearish.