EU Commission likely to give a negative opinion on the Italian budget – Danske Bank

Sandeep Kanihama FXStreet Contributor

Analysts at Danske Bank note that yesterday, Italy sent a letter to the EU Commission reaffirming its fiscal stance but opening up for a dialogue with the EU on the budget for 2019.

Key Quotes

“As a result, our base case is that the Commission will give a negative opinion on the Italian budget draft and ask for a revision, maybe as soon as today.”

“The relief rally in the Italian government bonds yesterday did not last long as 10Y Italian government bond s reversed the gain in the morning and ended more or less unchanged.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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