The usual suspects are acting as the main catalysts in trading today
The euro and the pound are the two worst performing major currencies on the day and they're both weighed lower by political issues. The pound is failing to escape jitters coming from Brexit woes as Theresa May looks to face an uphill task in getting parliament on board with her proposal. That inadvertently is also being a drag on the euro.
However, the single currency also has its own problems with Italy's budget/debt situation looking to go unresolved this week too. Italy's government has up until tomorrow to submit a revised proposal but they're not going to and the deadlock in discussions look set to continue. The game of chicken between the populist government and the European Commission isn't going to help investors and with EUR/USD falling to a 17-month low, it's sort of an epitome of the kind of uncertainty that the euro is facing right now.
The longer these issues drag on, particularly with key technical breaks seen, expect the dollar to keep running away as the leader into year-end now that we've cleared election risks and funding demand continues to underpin flows into the greenback.
