Italy to incrrase VAT to 1% increase
Italy 1% increase in VAT
Foreign Exchange Overnight / Morning Ranges:
Currency Rate EUR/USD 1.4005-1.4148
Currency Rate GBP/USD 1.5944-1.6038
Currency Rate GBP/EUR 1.1325-1.1388
Italy will vote today on if the VAT should be increased by 1% along with other suggestions brought forward by Prime Minister Silvio Berlusconi’s revised austerity plan which is aimed at reducing the ever growing bond yields. The vote won’t take place until around 7 pm tonight and includes such measures as a 1% increase in VAT, and a 3% increase on tax for those who earn over €300,000. The measures have already been approved by the cabinet after Italians took to the streets to protest against the plan.
Markets take a breather, and the Euro bounces having traded below $ 1.4000 yesterday. Asian/European stock markets recovered substantially after press reports that President Obama plans to propose job growth by injecting $ 300 billion into the economy next year, as a result, the USD has weakened versus the EURO from yesterday’s closing levels.
The Swiss Franc remains weak after the Swiss National bank announcement yesterday. Sterling softer today against a basket of currencies. No surprises on UK Industrial and Manufacturing data today.
There is a growing risk that softer UK data would back views that an additional economic stimulus may be implemented. Levels to watch $ 1.6000 and € 1.1350. Should we hold below these levels over the next few sessions, technically further weakness is possible, also due this afternoon for the UK is the GDP estimate (for last 3 months) by the National Institute of Economic and Social Research, usually a highly reliable report.
EUR/USD currently 1.4045. Support 1.3900, resistance 1.4200.
GBP/USD currently 1.5960. Support 1.5700, resistance 1.6000.
GBP/EUR currently 1.1365. Support 1.1350, resistance 1.1600.
Currency Rate GBP/AUD 1.5080
Currency Rate GBP/CAD 1.5800
Currency Rate GBP/ZAR 11.38
Currency Rate GBP/NZD 1.9340
Currency Rate GBP/PLN 4.7850
Currency Rate GBP/CHF 1.3690
Currency Rate GBP/CZK 27.76
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