Moscovici turns down the temperature

The euro is at the best levels of the day, up 32 pips to 1.1485 after falling as low as 1.1433 early in European trading.

Comments from Moscovici and better equity market sentiment are driving the move:

  • We must find solutions with Italy even if we don't agree
  • EU decisions on Italy will respect the standard rules and timeline
  • It is important to see how Italy answers EU letter on Monday

Italian 10-year yields are down 5 bps to 3.63%.

Meanwhile, Conte says he sees no reason to change Italy's budget.