In recent weeks the uncertain political situation in Portugal has caused significant concern. The resignation of two high profile political figures led to fears that the government could collapse, and derail the nation’s economic recovery in the process.
However, yesterday Portuguese President Anibal Cavaco Silva attempted to dispel concerns by asserting that Prime Minister Pedro Passos Coelho and his cabinet will remain in office until the end of their term in 2015.
Cavaco Silva asserted that an early election would not be called and stated: ‘The government has the support of an unequivocal majority in Parliament […] The best solution is to keep the current government in power […] I think in the current context of national emergency, calling elections is not a solution for the problems Portugal is facing. […] It is important to show our European partners that Portugal is a governable country.’
The Euro/Pound pairing is currently trading in the region of 0.8609.
As a result of Cavaco Silva’s comments Portuguese bonds strengthened, however the odds of Portugal returning to financial markets in 2014 still appear slimmer than before the political fracas.
In other Eurozone news, economists have forecast that tomorrow’s gauge of consumer confidence for the 17-nation currency bloc climbed from -18.8 to -18.3 in July.
However, a surprising result could spark Euro movement.
Euro (EUR) Exchange Rates
As of 08:55
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3155 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8609 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4285 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6580 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3614 >