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Senior Analyst at Danske Bank Mikael Milhoj noted headlines around the Italian budget should be relevant in the pair’s price action today.

Key Quotes

“Yesterday’s FOMC meeting left EUR/USD little changed, albeit the initial announcement triggered a spike higher, which was later reversed”.

“Today , focus will turn to the Italian budget proposal. With markets now fully pricing in a budget deficit well below the 3% of GDP threshold, we would have to see a significant negative surprise to see any spill over to FX markets and naturally the EUR in particular”.

“We don’t expect that to be the case and hence today’s release should primarily be important for fixed income markets, in our view”.