The euro is strong against the pound and the dollar this morning. However, Italy’s political tensions may have an effect on Italian bonds, which could impact the euro.
The single currency weakened yesterday as Matteo Salvini, leader of Italy’s League Party, called for a snap election. He said that differences between the coalition partners cannot be mended, a dispute which mainly revolves around a railway project between Turin in Italy and the French city of Lyon.
Salvini, who is both Deputy Prime Minister and Interior Minister, said “Let’s go straight to parliament and say there is no longer a majority…and quickly go back to the voters.” The League party took more than a third of the vote in the European Elections and is therefore ahead in the polls.
