EUR/USD remains vigilant on Italy – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen noted Italy keeps weighing down on the single currency.

Key Quotes

“Focus on the majors remains on US rates and Italian budget developments with the US back from a long weekend. EUR/USD was below 1.15 again yesterday even in the absence of Treasury moves as the EU challenged the Italian government somewhat over the weekend”.

“We note that while trade issues have been side-lined since the USMCA deal, attention could shift to next week’s semi-annual FX policy report from the US, after the US Treasury yesterday expressed worries over recent CNY deprecation”.