29.05.201809:41 Forex Analysis & Reviews: A number of reasons why the euro falls

After a slight increase in the beginning of the week, the euro continued to decline against the US dollar, as the lack of certainty connected with Italy's political fate exceeded the effect of the blocking by the Italian president of attempts to form a government of populist parties.

Although this is unlikely, the increased political uncertainty in Italy could affect the plans of the European Central Bank to reduce the program for the repurchase of assets and raise interest rates.

In the opinion of the President of Italy, the solution of the current crisis may be the formation of an interim government headed by economist Carlo Cottarelli.

Yesterday, it also became known that the Spanish parliament can vote for a lack of confidence in the government of Prime Minister Mariano Rajoy. What also puts some pressure on risky assets.

The distressed trade relations between the EU and the US are also gradually coming to the fore, which adds a negative to the markets and presses on the euro. Let me remind you that the temporary exemption of the European Union countries from additional import duties on steel and aluminum, according to the decision of US President Donald Trump, ends on June 1.

In this regard, EU Commissioner for Trade will meet tomorrow with representatives of the US Ross and Lighthouse. The meeting will be held in Paris, where further conditions for the liberation of the eurozone countries from additional import duties on steel and aluminum will be discussed.

A little later, on Thursday, they will also be joined by the representative of Japan, who will fight for the abolition of duties.

It should be noted that the European Union, in response to US fees, repeatedly threatened to introduce retaliatory measures. Brussels is ready to go on a response, which will consist of duties on goods imported from the United States, at a rate of 2.8 billion euros, unless the White House excludes the EU from the list of markets that are subject to trade sanctions.

Today, it also became known that the US is preparing a new package of sanctions against North Korea.

Despite the fact that the talks about the planned meeting of the leaders of the two countries have resumed again, the United States is ready at any moment to introduce new sanctions. This will happen if North Korea breaks the negotiations for a summit next month with the participation of US President Donald Trump and North Korean leader Kim Jong-Un.

As for the technical picture of the EUR / USD currency pair, we can count on a correction in the euro only after working out the support level of 1.1590, where the pair gets into a serious zone of overselling. If rapid growth from this level does not occur, the decline in risk assets will continue to the new lows of 1.1530 and 1.1500.

In the second half of the day, it is necessary to pay attention to the indicator of consumer confidence in the US, which can put pressure on the US dollar.