A discussion over the future of the EURUSD and whether there is a need for stimulus will be held this week between several policy makers including Governor of the Bank of England, Mark Carney, and President of the European Central Bank, Mario Draghi.
This meeting comes after a continuous decline in domestic demand in concordance with a weakening growth internationally that inhibits many central banks’ intentions on raising rates.
After EU officials met to discuss Italy’s lack of compliance in its endeavors to pioneer newfound economic exceptionalism, lawmakers agreed that the nation is not higher than international law. Moreover, the country now faces political risks as both Rome and Brussels are facing a seemingly inevitable clash over Rome’s ambitions.
Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, established that Rome has a week to reply to the European Union’s financial assessment on fiscal standards for the region.
The deadline for recommending formal economic sanctions against Italy is July 29, which would potentially encompass a 3.5 billion euro penalty.
Depending on pressures across the EU in the future, EURUSD may struggle to improve as investors look toward more efficient alternatives.