Euro
The euro held steady on Wednesday as investors were keeping cool heads ahead of ECB meeting on Thursday. The political turmoil in Italy continues to concern investors as the leader of the centre-left bloc, Pier Luigi Bersani is trying to form a government. However, the chances of a unity coalition are slim in a deeply divided southern European country. The controversial banking bailout of Cyprus is another reason why the euro is perceived to be a in a vulnerable state. Furthermore, EU’s official statistics agency, Eurostat announced on Wednesday that the continent’s consumer price inflation dropped to 1.7 per cent. The rate dropped by 0.1 per cent to the corresponding figure in February. Food and tobacco remained at 2.7 per cent, identical to the February figure.
