Euro Advances as Berlusconi Ready to Step Down

The euro rallied yesterday and done a good job keeping its gains today as Italian Prime Minister Silvio Berlusconi agreed to resign after the austerity measures will be implemented.

Italy was contaminated by the Eurozone sovereign-debt crisis, sending the country’s bond yield soaring this summer. The resulting difficulties that the nation’s economy faced left Italy’s Prime Minister out of favor even among his allies. The desertion of allies caused Berlusconi to lose majority in the Parliament.

Now, the country needs help from the European Union and the European Central Bank, but to receive that aid Italy is required to implement austerity measures. Berlusconi will remain in office until the austerity will be implemented and then resign, according to the word of Italian President Giorgio Napolitano who said:

Once that task has been achieved, the prime minister will tender his resignation to the president.

EUR/USD was at 1.3846 today as of 1:35 GMT, following yesterday’s advance from 1.3774 to 1.3832. EUR/JPY traded near yesterday’s close of 107.51, while EUR/GBP traded at about 0.8593 after it climbed from 0.8579 to 0.8596 on the previous trading session.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.