That’s the power of words. Euro recovers notably while Italian yield reversed after European Economic Affairs Commissioner Pierre Moscovici said he wanted to reduce tensions with Italy, regarding the budget, through “constructive dialogue”. He emphasized that both EU shared the populist coalition government’s goal of boosting growth and cutting debt. And he also reiterated that no formal decision was made from the Commissions side yet. Yesterday, EU sent a letter warning Italy’s budget as “obvious significant deviation” of the recommendations adopted by the European Council.
Italian 10 year yield is now at 3.581, down -0.097, after hitting as high as 3.784 earlier today.
EUR/USD also recovered notably after defending 1.1431 support.
