EUR/USD bounces back to 1.1400 on Italian budget vote news

• Bulls take back charge as Italy’s parliament said to vote on the budget by Dec 29^th.
• Resurgent US dollar supply lift EUR/USD back to the 1.14 handle.

The bulls regained poise in Thursday’s European trading, now pushing the EUR/USD pair for a retest of the 1.14 handle, as fresh Italian budget vote reports combined with broad USD selling offer some support.

The Italian daily newspaper, La Repubblica, reported that the Italian parliament is said to vote on the budget by Dec 29^th, maintaining the deadline for the budget approval that is by end of this year.

Further, the renewed weakness seen in the US dollar across its main competitors also collaborated to the revival of the recovery in the spot from near 1.1370 region. The greenback stalled its tepid bounce and came under heavy selling pressure amid a sell-off in the US equity futures and Treasury yields, as the risk sentiment sours on worries over the partial US government shutdown.

However, it remains to be seen whether the major extends its recovery mode above the 1.14 handle, as the latest European Central Bank (ECB) economic bulletin stated that significant monetary stimulus is still needed, which could turn out be an EUR-negative.

EUR/USD Technical Levels