European Politics Boosts Euro Intraday, Make It Reverse Rally Later

The euro backed off to new lows after attempting to rally earlier today. European politics was the main driver for the currency.

Italian President Sergio Mattarella vetoed the appointment of euroeskeptic Paolo Savona as a new economy minister, resulting in a surge of optimism among investors. Yet the positive sentiment was short-lived as Mattarella will likely face calls for impeachment and resignation from populist anti-establishment parties.

Meanwhile, Spanish opposition parties called for a vote of no confidence in Prime Minister Mariano Rajoy for alleged involvement in corruption schemes.

EUR/USD opened at 1.1684, rallied to the daily high of 1.1728, but pulled back to 1.1615 by 13:34 GMT today, trading near the lowest level since November 9. EUR/JPY tumbled from 128.22 to 126.91, retreating from the daily maximum of 128.53, and is now trading close to the lowest since June 28.

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