2019.08.1206:44:00UTC+00Euro Slides As Italy To Decide On Salvini's Vote Of No-confidence

The euro declined against its major counterparts in the European session on Monday, as possibility of snap elections in Italy rose after League leader Matteo Salvini filed a motion of no confidence against the government it formed with the anti-establishment 5-Star Movement on Friday.

Salvini has called all lawmakers of his party to return to Rome on Monday, in a bid to push for a no-confidence vote as early as this week.

League, however, requires the support of other parties to win the no-confidence vote against the present government.

The heads of political groups in the upper house of parliament is scheduled to meet later today to decide on the vote.

The popularity of the League has recently been rising in opinion polls, showing a backing of 40 percent.

Still, the decision to dissolve parliament lies with President Mattarella, who is unwilling to do so ahead of the finalization of the budget.

The currency held steady against its major counterparts in the Asian session, excepting the pound.

The euro edged down to 0.9254 against the pound, from near a 10-year high of 0.9324 hit at 7:30 pm ET. The euro is seen finding support around the 0.89 level.

The European currency depreciated to a 1-week low of 1.1162 versus the greenback from last week's closing value of 1.1198. Next possible support for the euro is seen around the 1.10 level.

The euro that closed Friday's New York session at 118.36 against the yen declined to more than a 2-year low of 117.52. If the euro falls further, 116.00 is seen as its next support level.

The single currency declined to 1.0877 against the Swiss franc, setting a weekly low. Continuation of the euro's downtrend is likely to lead it to a support around the 1.07 level.

Looking ahead, U.S. budget statement for July is due in the New York session.