The euro rebounded overnight following reports that Italy’s government now plans to gradually reduce its budget deficit in the coming years. The pound sold off ahead of Boris Johnson’s speech, but rebounded somewhat thereafter. Focus for pound traders remains on the Conservative Party Conference, with PM May holding a speech today.
EUR Rebounds on New Italy Budget Headlines
The euro traded higher against most of its G10 counterparts. It gained against AUD, NZD, SEK, GBP, and CAD in that order, while it traded virtually unchanged against USD, CHF and NOK. The euro lost some ground only against JPY.
Once again, the big theme for the common currency was Italian politics. The currency started the day on the back foot and accelerated somewhat to
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