Euro Trading Sideways Versus USD
The euro shows limited movements versus US dollar today. The euro/dollar pair is trading at 1.1320 level, having lost 0.07% on the day. Yesterday, the single currency weakened versus dollar, giving up earlier gains, after European Central Bank President Mario Draghi acknowledged slowing growth in the region. The euro had gained earlier on Monday on signs that Italy may cut its budget deficit target to satisfy the European Union.
The ECB President Mario Draghi stated, that the Eurozone growth has lost some growth momentum but this was mostly normal and not enough to derail plans by the bank to dial back stimulus further.
Political situation in Italy also exerts pressure on the euro. It was reported, that that Italy eventually decided to stick with its 2019 budget plan despite rumors of some adjustments. In a joint statement, Prime Minister Giuseppe Conte and his two deputies, Matteo Salvini and Luigi Di Maio, said that “the objectives that have already been fixed are confirmed.” Also, “as far as the ongoing discussions with European institutions are concerned, we agreed to wait for the technical analysis of the proposed reforms which have the most important social impact to quantify precisely the cost.”