EUR/USD last $1.1226, virtually unch....>

EURO-DOLLAR: EUR/USD last $1.1226, virtually unch. after slumping >100 pips

yesterday, as the rate fell to its worst level since June 2017, with EUR

suffering from increasing political uncertainty around Italy's controversial

budget & difficult Brexit negotiations. 

- Italy has to submit its revised budget to the EU today, but Rome has declared

it is only introducing some "limited adjustments" with no intentions of sweeping

changes to the 2.4% deficit target. It is also worth noting that government

sources told Market News that Italy is likely to introduce an "automatic

spending cuts mechanism" if growth falls in a bid to win over the European

Commission and avert an Excessive Deficit Procedure over its budget plans. 

- Bears look to the lower Bollinger band at $1.1208. On the upside, bulls need

to retake the key $1.1300 level before moving on towards yesterday's highs of

$1.1332. 

- EZ focus today falls on the release of German ZEW survey, German CPI & EZ CPI,

as well as Italy's budget submission. Elsewhere, ECB's Praet, Lautenschlaeger

and de Guindos are due to speak.