EUR/USD at peace with 1.30 vicinity

The EUR/USD seems to be entering a period of consolidation, an indication that for now, there is an equilibrium between buyers and sellers around the all important 1.30. Last Friday first, and yesterday (Monday) next, a sequence of failed attacks to establish the price below the big round number has resulted in a period of relative calmness.

Looking at the Italian deadlock, looks like it may be drag on for a few more days if not weeks until political parties decide what is best for the country. In theory, the longer it takes to decide a government, the more uncertainty should be surrounding the Euro, consequently prolonging its vulnerability.

Center-left leader Pier Luigi Bersani gave an ultimatum to Beppe Grillo, the leader of the 5-Star Movement, on Monday, demanding to back a temporary government, or else, a new election would be called. Continue Reading....