The EUR has picked up a strong bid on reports that Italy is planning to cut its budget deficit to 2 percent in 2021. The EUR/USD pair may fly high in Europe if the Italy-German yield spread drops sharply. The EUR/USD jumped 50 pips to a session high of 1.1594 a few minutes before press time and was last seen trading at 1.1585. The news that Italy intends to rein in its budget deficit to 2 percent of GDP in 2021 likely put a strong bid under the common currency. The EUR/USD may find acceptance above 1.16 in Europe if the spread between the 10-year Italian government bond yield and its German counterpart falls sharply from the 5-year high of 300 basis points reached yesterday. The common currency fell in the previous five trading days as Italy government’s decision to adopt a budget deficit target of 2.6 percent triggered fears of a ratings downgrade. EUR/USD Technical Levels Resistance: 1.16 (5-day EMA), 1.1640 (50-day EMA), 1.1660 (50% Fib R of recent drop) Support: 1.1536 (session low), 1.1505 (previous day’s low), 1.1422 (76.4% Fib R of 1.1301/1.1815) FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/JPY Technical Analysis: Jumps 100 pips on Italy deficit news, bull revival seen above 132.18 FX Street 4 years The EUR has picked up a strong bid on reports that Italy is planning to cut its budget deficit to 2 percent in 2021. The EUR/USD pair may fly high in Europe if the Italy-German yield spread drops sharply. The EUR/USD jumped 50 pips to a session high of 1.1594 a few minutes before press time and was last seen trading at 1.1585. The news that Italy intends to rein in its budget deficit to 2 percent of GDP in 2021 likely put a strong bid under the common currency. The EUR/USD may find acceptance above 1.16 in Europe if… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
