Single Currency Steady, Eurozone Data Positive
The Euro/Dollar pair lowered 0.01% to trade at 1.1697. Eurozone and German Final Services for May pointed at declines, as projected. Eurozone retail sales stayed flat at 0.1%. Today, the US releases ISM Non-Manufacturing PMI and JOLTS Job Openings. Overall, euro is steady as a streak of political scandals and surprises is over. 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.”