The tensions on the Euro point the tip of their noses.

The EUR / USD rose to 1.1472 on Tuesday morning before falling to 1.1425 around 11:00.

The concern over Italy and its budget seems to be the cause of this turnaround. Indeed, this weakness of the Euro corresponds to a sharp rise in Italian rates including the 10-year rate which goes back above 3.7%.

Italian Prime Minister Luigi Di Maio's latest announcement said that "the EU is acting as a wall against Italy" even if it leaves the door open for dialogue stressing that efforts will not concern flagship measures from the budget. Nevertheless, Italy has considered privatizations in order to increase its tax revenues and thus reduce its debt. This measure could reduce the impact of this expensive budget.

Despite these statements, Italy is worried and weighs on the Euro. According to analysts, this tension should continue to affect the single currency in the coming days.