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30 Apr 2013
Forex Flash: Italy´s new Government raises recovery hopes - ANZ
ANZ research analyst Brian Martin notes that the new Italian Government has raised recovery hopes in the beleaguered nation.
He notes that the new Italian government will attempt to address the dire economic environment and ease austerity further. Further, he adds that the modest easing in fiscal policy in distressed European economies is welcome, as evidenced in the narrowing in bond spreads vs bunds. At the margin, he sees that this easing in fiscal policy is positive for the euro against a backdrop of a 25bps rate cut from the ECB being discounted.
He notes that the new Italian government will attempt to address the dire economic environment and ease austerity further. Further, he adds that the modest easing in fiscal policy in distressed European economies is welcome, as evidenced in the narrowing in bond spreads vs bunds. At the margin, he sees that this easing in fiscal policy is positive for the euro against a backdrop of a 25bps rate cut from the ECB being discounted.