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Pound sterling rises against the euro amid the disappointment of the Italy-EU budget

Pound sterling rises against the euro amid the disappointment of the Italy-EU budget

  • Italy has just released its budget and the deficit target is three times its previous goal
  • The announcement of the proposal distorted the market and influenced the value of the euro
  • The pound experiences steady profits because of the situation and the completion of the Brexit deal

The British pound rises against the euro amid the budget shift between the European Union and Italy. Apart from the possibility that a Brexit deal will be drawn up on Monday, the Italian budget proposal will destabilize the market and cause steady profits for GBP, analysts say. Following the announcement of their deficit target for 2019, 2.4% of the gross domestic product of the economy, Italian officials argued with the European Union. The announcement led to sweeping out of the union, because the proposed goal is threefold of the previous goal. The target has also reportedly been & # 39; nervous & # 39; investors.

With Roma heavily in debt, the officials of the country have no other story, according to observers. Giovanni Tria, the Italian Minister of Finance, said the government will do what needs to be done to ensure that the current state of the market does not lead to a financial crisis. Lomini Di Maio notes, however, that civil servants will not betray their compatriots by changing the proposed budget.

A recent Bloomberg report shows that the euro is trading at around € 1.45 against the pound. The latter also acts higher against the New Zealand and Australian dollars. According to reports, the pound is worth $ 2,033 and $ 1,851 respectively.

The Brexit deal also contributes to the profit of the pound. Although the outlook is relatively positive, Mengu Securities & # 39; head strategist Kengo Suzuki warned: "We can not be too optimistic about the Brexit process, even if a deal can be closed at an expected special EU summit in November, by the British Parliament. "

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