Euro Moves Higher, Budget Dispute Between Italy and EU in Spotlight

Forex News

The single currency has recorded small gains versus US dollar today, after considerable losses on Tuesday. The EUR/USD pair is trading at 1.1411, having added 0.37% on the day. The euro continues to be pressured by ongoing budget dispute between Italy and EU.

The European Commission is expected to issue a report on Italy’s draft 2019 budget today. The European Commission rejected the expansionist budget of Rome for 2019 because it cancels the obligation to reduce borrowing made by the previous government. The Commission states that Italy must do more to reduce its huge public debt by more than 130% of GDP (the second largest in the euro area after Greece).

The Organisation for Economic Cooperation and Development (OECD) has released its updated growth forecasts. The forecast for the Eurozone was slightly darker than in September, with growth seen slipping from nearly 2.0% in 2018 to 1.6% in 2020.