Italy’s proposed 2019 fiscal plan is back in focus.
The EU has given Italy until today to revise its spending plans. But EU President Jean-Claude Juncker is worried about Europe’s fourth largest economy, saying, “The Italians are moving away not just from what they have promised us but also away from the minimum requirements of the stability pact.”
Tensions between Rome and Brussels are weighing on the Euro, which has dropped to 1.1216 against the Dollar – its lowest level in more than 16 months.
The Pound also had a volatile day.
Having declined for three consecutive days. The UK currency reached 1.2828 against the Dollar – its weakest in more than a week. It then bounced back by more than 0.8 per cent to 1.2936 against the Dollar after EU chief Brexit negotiator Michel Barnier said, “the parameters of a possible agreement are very largely defined”.
The rebound in the Pound could be short-lived as market participants turn their attention to the health of the UK labour market this morning. Economists forecast unemployment and wage growth had not changed. Any hint unemployment rose and wages declined could add to Sterling’s roller coaster ride and trigger further weakness against the greenback.
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