Forex Flash: Italian maelstrom calms with likely vote of confidence – Deutsche Bank

FXstreet.com (Barcelona) - In Italy, the center-left politician Enrico Letta was nominated by the President to be Italy's next prime minister. Letta said he would start talks to form a broad-based coalition on today and it is likely to go to parliament for a vote of confidence by early next week.

According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “the PM designate is expected to select a group of ministers, likely to be a mixture of politicians and technocrats. The new government will be backed primarily by Letta's center-left and the center-right PDL party led by Berlusconi.

Away from Italy, Fitch yesterday downgraded Bank of England's credit rating to AA+/Stable from AAA. This follows on from its downgrade of the sovereign rating last week.