The euro fell to a 7-week low as concern over the dispute over the Italian budget continued, and the euro did not respond to rises in Italian bond yields arising from the development of the dispute between Italy and the European Union.
The Euro fell to 1.1435 after breaking a support level at 1.1465 pulled back from a downtrend line on the 4-hour time frame, and it is expected to see further declines, possibly to 1.1330 levels.
On the other hand, the U.S. dollar rose, driven by the sharp rise of the U.S. bonds yields, which reached a seven-year high. Against a basket of currencies, the dollar rose to its highest level since August 20 at 96.13.
Sterling fell nearly 0.5% on the back of the U.S. Dollar rally and investors started to book their gains following a breakthrough in Brexit negotiations last week. Sterling is currently trading at 1.3040.
