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Free AccessEUR shies away from Italian debt..............>
FOREX: EUR shies away from Italian debt discussions
-The single currency retreated Friday morning alongside Italian bonds as the
fragile governing coalition continue to push for a higher fiscal deficit target
to boost their spending plans. Italian-German 10y yield spreads widened by as
much as 30bps, helping press EUR/USD back towards the 1.16 level. Markets
clearly remain sensitive to political risk, with Italian equity markets also
sliding well over 2% so far today. Lower than expected Eurozone Core CPI did
little to underpin, pressing EUR/USD to the day's lows of $1.1610.
-GBP slid sharply as Y/Y GDP growth was revised lower (courtesy of
lower-than-previously-recorded construction output figures), pressing GBP/USD
below the 21-dma before the rate recouped the majority of the losses.
-AUD and CAD are improving alongside a modest recovery in the metals/energy
complex, while NZD/USD lags, seemingly anchored to a N$1.26bln option expiry due
to roll off today at the $0.6600 level.
-Canadian GDP, US PCE numbers and the MNI Chicago PMI are the data highlights.
ECB's Lane & Praet, BoE's Ramsden and Fed's Williams & Barkin are due to speak.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.