Monday, April 21, 2014

Italy was pleasantly surprised by the strong euro outlook




Euro opened the week moderately optimistic. On Monday 21 April the U.S. totaled 1,381 news coming from Europe, can significantly tighten up the euro exchange rate , but due to the fact that some of the Europeans (including Germany) continues to celebrate the Easter holidays , it is unlikely to happen.


The growth of the Italian economy in 2014 . may exceed 0.8 %. This was the Italian Corriere della Serra Economy Minister Pier Carlo Padoan Italy . The Minister did not say how much it may be exceeded this figure .


Earlier in April, the Italian government issued economic and financial forecasts , which contained a figure expected in 2014 . economic growth – 0.8%. However, according to P.Padoana , this figure may be exceeded. He noted that the estimate on how much it is exceeded , is not currently possible . Italy’s economy , the third largest in Europe , was strongly reduced in 2012 and 2013. and returned to growth in the last quarter of 2013. While economists polled by Reuters expect GDP growth of 0.6% in Italy in 2014 .


Meanwhile the Italian minister said that the decision of the government of the country tax cuts for low-income residents for 80 euros per month should become permanent . ” If it is not such, it will not have any positive effect on the economy ,” – said the Minister.


The fact that the debt crisis in Italy left behind – not only the opinion of the Italian economy minister , but also a more objective debt market. Thus, the yield of U.S. bonds (2.7%) is comparable to the yields of Italy ( 3.1%). Moreover , the market is seen a clear demand for the securities of the latter. Such news could significantly strengthen the position of the already strong euro . And it can suppress the high rate of economic activity is gaining momentum . Therefore, all the speculation surrounding the euro can be reduced to one: the ECB will be decided on the incentives for the depreciation of the currency or not?



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