The Italian budget row has been worrying investors for the past few weeks and today we could see even more fireworks. Last week, the Italian government refused to revise its draft budget for 2019, with Luigi Di Maio saying the government would maintain its deficit target of 2.4%. Today the European Commission will announce its decision on whether it will punish Italy for its stance.
The euro had a bit of a volatile day against the dollar, as it began the day by hitting a two-week high before falling back to a position of weakness. The single currency also lost some ground against the dollar, while the European stock markets were in retreat throughout the day. Traders continue to be worried about economic growth prospects, the US-China trade war and Brexit.
There are no economic data releases from the eurozone today, but we will see the aforementioned EC decision on Italy, as well as the European Central Bank’s non-monetary policy meeting.