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Investment themes – Euro / dollar at crossroads as “Trump trade”, European uncertainty may have peaked for now
The announcement that the Italian referendum on Sunday, December 5 was lost by the government with the decisive margin of 60-40, led to a 21-month low in the euro / dollar exchange rate. Euro / dollar briefly dipped to 1.0505 but the pair quickly rebounded to above 1.07. Below 1.05 lies the 13-year low of 1.0460, which was struck in March 2015. The euro’s rebound surprised market participants as the single currency found itself trading higher than the level at which it was before the referendum took place. Since many in the markets were fretting about the political uncertainty brought on by the Italian referendum ... (full story)