Wednesday saw the shared currency of the European Union slide toward its lowest value in seven days against the U.S. dollar as European Central Bank policy makers prepared to convene for Thursday meetings in the face of regional scandal, Bloomberg reports.
As policy makers prepare to meet, anticipation is mounting for Italian elections scheduled for later this month while calls remain for the resignation of Prime Minister Mariano Rajoy of Spain, who along with members of his party is accused of accepting bribes. Senior broker Kurt Pfafflin with Daniels Trading recently referred to the Spanish economy as “an absolute basketcase,” citing its high levels of joblessness, sizable capital flight and pension fund raiding.
“The banking scandal in Italy, plus the Italian elections and the Spanish scandal and economic issues, all mean that there are still risks for the euro that will cap the upside,” senior currency strategist Jane Foley with Rabobank International in London told Bloomberg on Wednesday.
The euro dropped to its lowest value against the greenback since late January.
Thursday’s ECB meeting might revolve around the scandals and their impact on the monetary unit, according to Reuters.
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