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Italian PM Conte's address to the.......>

EURO-DOLLAR
EURO-DOLLAR: Italian PM Conte's address to the Senate pushed EUR/USD off lows
yesterday, allowing the rate to wipe out earlier losses. Conte said that the
gov't is "ready to work on this new [ESM] credit line", signalling willingness
to cooperate with EU partners in setting up the facility in a swift manner. EU
leaders will discuss a joint response to the coronavirus crisis in a
teleconference on Thursday. That being said, EUR/USD eased off thereafter, as
the greenback was in demand, and finished marginally shy of the open.
- Elsewhere, BBG reported that ECB members will discuss "whether to accept
junk-rated debt as collateral from lenders" in a call on Wednesday evening.
- EUR/USD is little changed at $1.0856. Apr 17 low of $1.0812 provides the
initial bearish target, with a break here opening key support at $1.0769, the
low of Apr 6. On the topside, clearance of Apr 15 peak at $1.0991 is needed to
reinstate bullish momentum.
- Regional highlights this week include EZ consumer confidence (today), a slew
of flash PMI Surveys (Thursday) and German Ifo Survey (Friday). ECB's Rehn will
speak on the coronavirus situation, econ outlook & MonPol matters later today.

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