US Dollar May Rise On CPI, Euro Casts Worried Eye On Italy And France

A barebones offering on the European economic data front puts politics back into the spotlight, with all eyes on a meeting between Italian Prime Minister Giuseppe Conte and European Commission President Jean-Claude Juncker. They will try to iron out a lingering budget dispute before Thursday’s EU leaders’ summit.

Mr. Conte is perhaps the most forthcoming of among the leaders of Rome’s recently installed anti-establishment government. If he is unable to at least begin to mend fences with regional authorities in Brussels at this sit-down, the Euro is likely to decline amid worries about punitive action ahead.

Progress has been made more difficult by recent turmoil in France. Protests against a tax hike have forced President Emmanuel Macron into a speedy retreat that might push his country’s deficit beyond EU-mandated limits. If this is approached leniently, Italian populists have said they will demand treatment in kind.

Later in the day, all eyes will turn to November’s US CPI report. The core inflation rate is expected to register broadly on-trend for the year at 2.2 percent. That might revive recently sagging rate hike bets as traders conclude a data-dependent Fed need not be dovish, boosting the US Dollar.

ASIA PACIFIC TRADING SESSION

Asia Pacific Trading Session Economic Calendar

 

EUROPEAN TRADING SESSION

US Dollar May Rise on CPI, Euro Casts Worried Eye on Italy and France

 

** All times listed in GMT. See the full economic calendar here.

Disclosure: Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment ...

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