By FX Empire.com
The EUR/USD ended the week with some relief as investors saw some hope that the new governments and political blood in Europe might contain the crisis after Greece announced the new prime minister and Italy stepped closer by attaining the first vote on the budget.
Monday’s session will mainly depend on the developments expected on the weekend inItaly. We can see that Berlusconi could resign as soon as the markets open and political clarity over the next crisis government or new elections will either ease of fuel fears.
The Italian upper house (Senators) approved the austerity measures on Friday, following the approval by the upper house budget committee on Thursday, and now all the focus will turn to the lower house (House of Deputies), which is expected to vote on the measures on Saturday.
An approval could trigger more optimism to the market, as the Italian Prime Minister, Silvio Berlusconi agreed to step down and his party is easing their restriction to calling for early elections and approved on assigning new Prime Minister instead; however, we look forward to Italy with hopeful eyes that the nation will act in a faster pace than Greece and end the political instability as soon as possible.
The euro area will start the week with September’s Industrial Production at 10:00 GMT which is expected with 1.5% drop after 1.2% rise.
Originally posted here
