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EUR/USD last trades flat at $1.1206,....>

EURO-DOLLAR
EURO-DOLLAR: EUR/USD last trades flat at $1.1206, hovering just above
yesterday's lows, after dropping 18 pips yesterday, with the bulk of the move
owing to comments re: fiscal policies from Italian Dep PM Salvini.
- Yesterday, Salvini told reporters that Italy is ready to break EU fiscal rules
and increase its debt in order to improve domestic labour market. Although his
fellow Dep PM Di Maio criticised these comments as "pretty irresponsible,"
Salvini reiterated his stance later in the day.
- A dip through $1.1200 would expose the May 7 low of $1.1167, ahead of the May
3 low at $1.1135. Meanwhile, the initial bullish target is provided by the
100-HMA at $1.1224. A topside breach of the figure would open up the upper
Bollinger band (2%) & May 1 peak at $1.1265 and above here would allow bears to
improve the outlook.
- EZ attention today turns to CPI & GDP readings from across the bloc, with
particular focus on German & EZ GDPs. EZ trade balance and CPI will follow on
Thursday and Friday respectively. ECB's Praet and Coeure speak later today. The
latter is set to speak again on Thursday, as are ECB's Praet and de Guindos.

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