The Euro has bounced back from last week’s 13-month lows against the USD. Having flirted dangerously with 1.12, the Euro is now thoroughly holding onto 1.15 due to a combination of the USD outflows (see Trump’s comments) and slightly more confidence in Turkey. No significant eurozone data is coming out for the markets until Thursday.
The Euro extended its early week gains, opening this morning at 1.1490 despite fresh concerns from Italy. The catalyst for the shift upwards was attributable mostly to USD weakness after US President Trump and FOMC Member Bostic both commented on the economy. Nevertheless, the Euro finds itself at its highest point in over a week.
The Euro traded within a tight 30-pip range for much of Monday with little to drive momentum on the economic calendar. However, the market did start to heat up after the Italians took the spotlight. After the tragic Genova bridge collapse, the Italian government wants to spend €80 billion on infrastructure. The move, however, would breach EU budgetary rules, potentially outlining a conflict with the broader union. The Euro shed some of its earlier gains and was whittled lower against the Greenback as investors took the news from Italy poorly.