Euro set for second biggest weekly drop since October as risk looms
Friday,
23-Feb-2018
04:18 PM (IST)
The euro slipped on Friday and is set to post its second biggest weekly loss in nearly four months as investors trim positions before a big week for global currency markets from a European politics perspective.The outcome of the Italian general election is due on March 4 and the German Social Democrats poll of its members on joining another coalition government with Chancellor Merkel’s conservatives is also due that day, both events which may trigger fresh market volatility.With recent surveys and the European Central Bank's minutes of its January policy showing some signs of caution among policymakers about the bloc's economic prospects with the backdrop of a strong euro, investors are searching fresh catalysts to drive the currency higher.In a market where long euro bets are at their largest on record, according to CFTC positioning data, any less than optimal results from either of these two major political events may prompt some funds to sell the single currency.
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