Italy parliamentary election could affect euro rate

Baku. 9 January. REPORT.AZ/ Despite the positive outlook for the euro exchange rate in 2018, investors are cautious on the eve of the March 4 parliamentary election in Italy and began hedging their long positions in this currency.

Report informs citing the Forexpf.ru, the Bloomberg CFTC CME Euro-Chicago Stock Exchange of the US Treasury said the long speculative positions on the euro have now reached a record high. However, these contracts cover a period of one year. Because of the uncertainty of the results of the Italian election, the 2-month contract was at the worst level after May 2017.

German Commerzbank's currency strategy expert, Lan Nguyen, said: "I think hedge transactions in currency positions are related to elections. But I do not believe the outcome of the elections will be as effective as the French elections”.

According to JPMorgan bank analysts, results of the elections in Italy will lead to the formation of a large coalition. For this reason, 2-month euro sales contracts exceed purchase contracts 29 points.

According to survey among the Bloomberg analysts, USD/EUR rate is predicted to reach 1.22 in 2018.