EURUSD is sliding down Overview for 23.10.2018

The major currency pair is falling on Tuesday; investors are trying to avoid risks.

On Tuesday morning, EURUSD continues the decline it started yesterday. The current quote for the instrument is 1.1448.

The major currency is back to the “bearish” hands at the beginning of the week. The main reasons of this are investors’ attempts to avoid risks and their interest in “safe haven” assets.

First of all, the profitability of the American bonds is rising again. Secondly, the Euro didn’t like the news from Italy. Yesterday, the country’s government announced that it would stick to the approved budget, which was marked by high expenditure level. Italians are doing this even after the European Union warned them that it would conflict with the EU rules and the growth of country risk.

According to official data, the budget deficit in Italy nest year may be 2.4% of the GDP, which is three times more than the European Union finds appropriate. The European Commission has the right not to approve this budget and make Italy pay fines for these violations. Of course, it won’t make Italy more stable financially.

There weren’t any significant macroeconomic reports for EURUSD yesterday and the same will be today. In the evening, the Euro Area is going to publish the Consumer Confidence in October, while the USA are scheduled to report on the Richmond Manufacturing Index. However, both these reports are very unlikely to force any serious fluctuations in EURUSD.