EUR loses early lead as fresh Italian.........>

FOREX: EUR loses early lead as fresh Italian elections look even more likely

-Fresh elections in Italy, as soon as later this year, look more and more likely

as parliament may turn down a technocratic cabinet after former IMF staffer

Cottarelli was given the mandate to form government by the Italian President

today. This prospect dented the EUR, Italian government bonds and Italian

equities despite a higher open, prompting the suspension of trade in many

Italian bank stocks. A fresh 2018 low was printed in EUR/USD at $1.1608.

-Nonetheless, price action has been thin and erratic given the market holidays

today: both the UK and US have the day off, leaving just European traders to

watch the developments in Italian parliament. Italian politics is likely to

remain the focus as a conclusion to the political saga looks even further away

that it did on Friday and a light data calendar until Friday's nonfarm payrolls

provides little to distract in Europe.

-Elsewhere, NZD was the modest strongest currency in G10 as it continues to

bounce back (very mildly) from the year's lows. Overnight, Japanese jobless

numbers are the highlight.