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Italy’s Deputy Prime Minister Matteo Salvini was out on the wires in the last hour, reiterating that government will not back down from budget plan and won’t go back on pension reform, tax cuts.

Speaking to the state broadcaster RAI, Salvini was  “absolutely sure” that the German-Italy bond yields spread won’t reach 400 bps.  

The comments did little to ease market worries, with the EUR/USD pair quickly retreating around 15-20 pips from daily tops and slipping back below the key 1.1500 psychological mark.