Traders’ relief over Italy’s budget and Italian borrowing costs’ drop were the main reasons behind euro rally. The euro rally was also encouraged by EU-friendly comments by Italy’s Deputy Prime Minister. Luigi Di Maio stated that the Italian government was ready to sit down with the EU over the Rome’s budget.
OPEC has difficulty to produce more oil following the respective June agreement, according to an internal document seen by Reuters. An increase in Saudi Arabia was offset by declines in Iran, Venezuela and Angola.
The European Union will seek Asian support for free trade, the JCPOA and combating global warming at an EU-Asia summit. China, Japan and Russia, among other, will join the EU-Asia summit as a counterbalance to a more protectionist United States.
Following last week’s Trump’s comments – twice – on the Federal Reserve, the US President brought FED under criticism again. “My biggest threat is the Fed” he said and he added that “I put a couple of other people there I’m not so happy with”. Last week’s comments on FED were that it was raising interest rates so swiftly it threatened the country’s economic health. Past U.S. presidents have been reticent to criticize the central bank because its independence is seen as important for economic stability. Forex news – Bits & Pieces from Reuters – FED under criticism Iran calls U.S. efforts to cut its oil exports to zero ‘political bluff’. Don’t mention the oil price – U.S. legal threat prompts change at OPEC. The oil producing group has urged its members not to mention oil prices when discussing policy as seeks to avoid the risk of U.S. legal action for manipulating the …
The pound edged higher after UK labour data exceeded expectations. However, traders doubt that a Brexit deal would be reached at an EU summit this week, limiting the sterling’s gains.