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EUR benefitted from EU's Moscovici......>

EURO-DOLLAR
EURO-DOLLAR: EUR benefitted from EU's Moscovici sounding a little warmer re:
Italy on Friday, while source reports from close to Italy's 5-Star & Lega
parties pointed to the potential for a 2.1% deficit/GDP target (denied by the
leader of 5-Star over the weekend).
- Friday also saw Moody's downgrade Italy by 1 notch to Baa3, but crucially, the
ratings agency changed the country's outlook to stable.
- EUR/USD last deals at $1.1500 in early dealing this week, with risk off flows
apparent.
- Worth noting that RTRS sources have suggested that "the Italian government
expects the European Commission to decide for the first time ever on Tuesday to
ask a member state to revise its draft budget."
- If EUR/USD breaks below $1.1500 bears will target 50% Fibo support (from 2016
lows) and the Oct 09 lows at 1.1448/32.
- EZ highlights this week include EZ PMI data, due Wednesday, as well Thursday's
German IFO survey, followed by S&P's sovereign rating review of Italy on Friday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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