Update (2 pm ET): Italy has received "only verbal assurances" about budget deal with the EU, according to a source in the prime minister's office.

Though they added it was "reasonable" to expect a "positive outcome" from a Wednesday meeting where EU officials will discuss the Italian budget.

* * *

The dueling reports are notable, since according to rumors reported in the Italian press last month Economy Minister Giovanni Tria was reportedly mulling quitting the government after butting heads with Prime Minister Giuseppe Conti over who would take the lead on negotiations with the EU.

One day after Italy cut its GDP growth forecast for 2019 to 1% from 1.5% - more than negating their proposed cuts to the projected deficit in their draft budget - the Italians have reportedly struck a deal with the EU to avert potentially billions of euros in fines, according to an Italian Treasury official.

Reacting to the headline, which, if accurate, would presumably lessen the chances of an Italian banking crisis and the possibility of 'Italeave', the euro climbed on the news.

(Click on image to enlarge)