EUR on the up as possibility of anti-EU.......>

FOREX: EUR on the up as possibility of anti-EU Italian cabinet dwindles

-While the appointment of an Italian cabinet featuring Paolo Savona, a

Eurosceptic university professor, as finance minister looked more than likely at

the tail-end of last week, a veto courtesy of Italy's President has marked down

the likelihood of an anti-EU government in Rome. It is now beginning to look

more likely Italians will head back to the polls for the second time this year,

or the President will construct a technocratic government (or both). As a

result, EUR trades stronger, with Italian bond yields pulling back from recent

multi-month highs.

-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. The Italian President is due to

meet with Cottarelli, a former IMF staffer, today to possibly discuss

constructing a technocratic cabinet despite claims from the League's Salvini

that he continues to aim to govern with the party's vetoed ministers. Data

calendar remains quiet.