The euro fell to a two-month low today as the European Union criticized spending plans in Italy, sparking new concerns over the euro-zone conflict. Due to political controversy over the Italian budget, the euro lost more than 1% this week against US dollar.
The EURUSD reached 1.1432 the lowest level over two months. Italy is the third largest economy in the euro zone and the budget crisis could destabilize the region.
The pound rose slightly after Barnier, the chief European negotiator, said the deal was 90 percent done, but any failure to resolve the Irish border problem could derail any deal.
On the other hand, the US dollar rose against a basket of currencies and is currently stabilizing at 95.95 levels near its highest level since yesterday. The US dollar also rose against its Canadian counterpart after negative inflation data in Canada, so USDCAD recorded highest level since September 11 at 1.3120.
The effects of tariff application on the Chinese economy began to show as the Chinese economy grew by the slowest pace since the first quarter of 2009, with gross domestic product rising by 6.5% in the third quarter of 2018, and Chinese Yuan declined to trade near a two-month low against the US dollar.
