The Euro has hit a 20-month low against other currencies

The Euro has hit a 20-month low against other currencies

The Euro has fallen to its lowest level against the US dollar since March 2015. The confirmation that German growth slowed to just 0.2% in the last three months hasn’t helped either as traders are now getting anxious about next month’s Italian constitutional referendum.

Votes look poised to reject Prime Minister Matteo Renzi’s electoral reforms, which might trigger his resignation. Donald Trump’s plans to spend $1trn on rebuilding Americas infrastructure is also pushing the Euro down.

The dollar largely maintained gains against other major currencies this morning following its solid U.S. economic indicators and the Federal Reserve policy meeting minutes that firmed speculation for more rate increases.

Strong U.S. durable goods orders and consumer sentiment data on Wednesday bolstered already heightened expectations that the Fed will keep tightening monetary policy to prevent the economy from overheating. Minutes from the Fed’s November meeting showed strength in key sectors of the U.S. economy, hardening the case for an increase in short term interest rates in December.