EUR/USD shifts its focus to Italy – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj noted headlines around the Italian budget should be relevant in the pair’s price action today.

Key Quotes

“Yesterday’s FOMC meeting left EUR/USD little changed, albeit the initial announcement triggered a spike higher, which was later reversed”.

“Today , focus will turn to the Italian budget proposal. With markets now fully pricing in a budget deficit well below the 3% of GDP threshold, we would have to see a significant negative surprise to see any spill over to FX markets and naturally the EUR in particular”.

“We don’t expect that to be the case and hence today’s release should primarily be important for fixed income markets, in our view”.