It’s a choppy start to the day for the euro, as the single currency benefits from the pound’s weakness, but fears over the Italian economy continue to weigh. Italian economic indicators will be released mid-morning, with Italian quarterly GDP growth expected to hit 0%.
Elections, however, now seem off the table for Italy, providing more time to negotiate and approve a budget within its deadline. Prime Minister Giuseppe Conte, who tendered his resignation after a tabled no confidence motion, will now not resign, after his opponent (and coalition partner) Luigi di Maio’s Five Star Movement managed to form another coalition with the Democratic Party.
We will also see Eurozone inflation, expected to hold steady year on year at 1%, and unemployment figures, likewise expected to remain unchanged.
