Italy Concerns Ease – EUR Strengthens

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Wednesday, October 3 – Asia Session Recap

During the Asia-Pacific session, the market’s main focus continues to remain on Italy.

According to Reuters, Italy is to seek a cut in their deficit/GDP  ratio to 2.2% for 2020 and to 2.0% for 2021. As Italy was originally seeking a 2.4% deficit/GDP ratio, the compromise has somewhat alleviated recent market concerns.

As such, EUR has remained well supported, recovering from its recent weakness. EURGBP is back above the 0.89 handle and EURNZD the 1.76 handle.

Elsewhere, AUD has weakened following a strong miss on Building Approvals data for August. Building Approvals printed at -9.4% versus consensus of 1.0% and a minimum expectation of -2.5%.

For additional research, we’ve posted news articles from around the web below.