The European markets are responding to Italian Economy Minister Giovanni Tria’s comments on Sunday that the progressive measures will only be implemented gradually. And, it makes no sense to seek extra deficit when yields are high.
Italian 10 year yield is currently dropping -0.109 to 2.936, back below 3.000.
German 10 year bund yield is rising 0.021 at 0.412, back above 0.400.
The development is giving Euro a lift, especially against Swiss Franc. It’s now getting more likely that EUR/CHF can defend 1.1154/98 key support zone as we expected in our technical outlook report.
