The Euro had a strong performance last week. After having initially touched fresh yearly lows of 1.1216 verse the US dollar last Monday, it has bounced strongly and ended the week at 1.1416. This morning, it is trading at 1.1430. The Euro received a boost from hopes that Italy’s Prime Minister Giuseppe Conte is willing to work with the European Union over the country’s 2019 budget. Over the weekend, Italy’s Deputy Premier also said that the country would stay with its reform planned in the 2019 Budget.
On the data front, EU inflation numbers came out without any revisions. The year to year CPI change remained at 2.2 percent, while the core gauge stayed at 1.1 percent. The ECB expects core inflation to rise significantly over the next few quarters, according to Mario Draghi on Friday.