Italian problems do not give rise to the Euro
At the auctions in Europe of Euro has lost all the profit that he had at the end of the Asian session. Decrease in quotations has renewed 1,1592 after review by the Vice-Prime Minister of Italy Luigi Di Maio about the budget deficit in 2019. He confirmed that the target for the budget deficit in 2019 will amount to 2.4%. In 2020 it will decrease to 2.2% in 2021 – up to 2.0%.
Negative dynamics of the British currency against the dollar also spurred sales of the single currency, despite the reversal up the cross Euro/pound. The pound’s decline has responded to the UK PMI data which came in slightly worse than forecast.
Price swings in major pairs reserved. Traders are awaiting a speech the Prime Minister Theresa may at the annual conference of the Conservative party. In addition to her evening planned speeches of FOMC members, Lael Brainard and Loretta Mester. At 23:00 (gmt +3) will make the fed’s Jerome Powell. He spoke yesterday, so it is unlikely that market participants expect from him something new.
I have no trading ideas for the EUR/USD due to the effect of her news from Italy and Britain. Let the market adapts to the Italian problems, and after the release of the report on the American labor market will look in what direction to trade.
The index of business activity in the services sector in Germany 55,9 (the forecast was of 56.5, the former value was 56.5).
The index of business activity in the services sector in France was equal to 54.8 per (prediction were 54.3, previous 54.3).
The index of business activity in the services sector in Italy was 53.3 (forecast was of 52.8, previous 52.8).
The index of business activity in the services sector in the Eurozone was equal to 54,7 (consensus: 54,7, previous reading of 54.7).
The index of business activity in the services sector in the UK at 53.9 (consensus: 54,0, previous 54.3).
Retail sales in the Eurozone was -0.2% m/m, 1.8% y/y (consensus: 0.2% m/m, 1.8% yoy, the previous value of -0,6% m/m, 1.0% y/y).