Single Currency Recovered
The Euro/Dollar pair lifted 0.30% to 1.1694. Today, the Eurozone issues Sentix Investor Confidence and Purchasing Price Index and tomorrow we’ll get German Services PMI and retail sales. Additionally, the U.S will announce ISM Non-Manufacturing PMI. On Friday, US NFP data exceeded all projections with wage growth rising from 0.1% to 0.3%. Nonfarm payrolls grew to 164K from 189K. The jobless rate declined to 3.8%.
Political situation in Italy has calmed. A coalition government has been formed with Giuseppe Conte as Prime Minister, Giovanni Tria as economy minister and Paolo Savona as EU affairs minister. 5-Star and League leaders Luigi Di Maio and Matteo Salvini will be vice premiers. The new Cabinet is yet to face a confidence vote in both houses.
There was a 2-days meeting of the G7 finance ministers and central bank governors. Members were worried with a trade tension between the US and China. Specifically: “concerns were expressed that the tariffs imposed by the United States on its friends and allies, on the grounds of national security, undermine open trade and confidence in the global economy.” And, “Finance Ministers and Central Bank Governors requested that the United States Secretary of the Treasury communicate their unanimous concern and disappointment.”