It’s been a choppy start to the day for the euro, with concerns over the Italian political crisis weighing down on the single currency. Matteo Salvini has called for a vote of no confidence in the Prime Minister, also his coalition partner, but the date was postponed until the President returns tomorrow. If the vote takes places and is passed, there could be a general election – and Salvini could enter power. Having been at loggerheads with Brussels over Italy’s ‘expansionist’ budget – despite its extremely high debt to GDP level – his election will raise worries over the performance of the euro.
Today we will see inflation figures, expected to come in slightly below last year and, at 11:00, the Bundesbank’s monthly report. Like the pound, it is quiet on economic releases for the rest of the week, with Spanish balance of trade on Wednesday and European and German manufacturing figures on Thursday.
