EUR/USD has ticked higher on the back...>

EURO-DOLLAR: EUR/USD has ticked higher on the back of an FT source report

stating that the European Commission will hold off disciplinary procedure

against Italy this week, effectively giving Rome's ruling coalition more time to

try and reach agreement with Brussels over its elevated debt levels.

- The rate last seen at $1.1376, 8 pips better off. A clean break above the

upper Bollinger band (2%), just above the current level, would open up the upper

1.0% 10-DMA envelope at $1.1384. Bears look for a retreat below the 200-DMA at

$1.1351 after breaching the figure for the first time since Apr 2017 on Friday.

- This comes after Italy drew some attention over the weekend, with PM Conte set

to meet with his two deputies this week. He seeks to clarify Dep PM Salvini's

call to start working on the 2020 budget early, which Conte sees as an attempt

to lock in some of Salvini's demands, such as introducing a flat tax.

- On Friday, EUR/USD rallied 76 pips amid prolonged USD weakness. A firmer set

of PMI prints across France, Germany and Eurozone showed the services sector in

particular humming along well, aiding the single currency.

- EZ focus today turns to German Ifo survey.