EURUSD and Italian Stocks Dip on Italy Growth Cut, USD Recovers - US Market Open
MARKET DEVELOPMENT – EURUSD and Italian See Brief Dip as Italy Looks to Cut Growth Forecasts
EUR: The Euro saw a brief dip alongside Italian stocks after source reports noted that Italy is to lower its 2019 GDP forecast to 0.1% from the overly optimistic 1%, which in turn would see the budget deficit move to 2.3-2.4%. This had been similar to reports out yesterday, nonetheless, Euro saw a slight to 1.1220, which also followed reports that German growth was said to be lowered to 0.8% from 1.9%. Elsewhere, the ECB meeting minutes provided little in the way of price action, given the lack of new inflation. Ahead of the event, EURUSD options had signalled that volatility would be somewhat tame (click here)
USD: The US Dollar is marginally higher across the board with the exception of the JPY. FX volatility has been somewhat subdued this morning with a lack of drivers to instigate notable price action. GBP is underperforming after yet another failed attempt to crack above 1.32. JPY crosses have dipped slightly as equity markets move higher stalls.
Source: Thomson Reuters, DailyFX
DailyFX Economic Calendar: – North American Releases
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--- Written by Justin McQueen, Market Analyst
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