- PM Conte to also address senate on government crisis on 20th August.
- EUR/USD meeting supply on poor EZ data and stronger Dollar.
The situation in Italy is that the nation’s political groups have been failing to reach agreement on when to hold a vote of no confidence, amid a government crisis triggered by nationalist leader Matteo Salvini. Mr Salvini pulled the plug on his populist coalition and now wants an urgent confidence vote and elections. The government is headed by an independent prime minister, Giuseppe Conte, and a no-confidence vote would bring him down.
The Italian senate had said to have rejected the Lega party’s call to hold a no-confidence debate in government tomorrow, according to Reuters and reports are now that a date has been confirmed that the Italian senate will debate a no-confidence motion on 20th August. PM Conte to also address senate on government crisis on 20th August.
FX implications:
The EU and euro is under scrutiny with Grexit, Brexit and now a defiant member of the EU in Italian all the while that eurozone data continues to disappoint. Germany’s August ZEW data was terrible, with current conditions falling from -1.1 to -13.5 (mkt -6.3), and expectations from -24.5 to -44.1 (mkt -28.0). EUR/USD is treading on thin ice below the 1.12 handle today, -0.30% and a touch of its worst level of 1.1170. The 1st Aug low was down at 1.1026.
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