The Euro and sterling were steady overnight while the Australian dollar lost ground with markets still seemingly backing the Dollar. The EUR/USD cross has levelled off around 1.134 having come under pressure yesterday following the release of data showing that Eurozone GDP growth halved to just 0.2% qoq in Q3 from an already modest 0.4% qoq in Q2. The beleaguered Italian economy posted no growth which will compound the government’s challenge of meeting its 2019 fiscal deficit target of 2.4% of GDP. The ECB has stuck to its planed tapering of its QE program and has pencilled in rate hikes after summer 2019 but it will be hoping that growth and inflation pick up to justify this monetary policy stance.
