On Monday, European markets started the new week in a positive mood as investors welcomed the end of the political stalemate in Italy. The euro joined the risk rally even as the eco data in Europe and in the US were weaker than expected or in line with expectations at best. EUR/USD filled offers in the 1.31 area even as markets expect a the ECB to cut its policy rate this week. Intraday, EUR/USD changed hands in the mid 1.30 area before the open of the European markets. In Asia, there was no euphoria about the formation of a government in Italy. However, sentiment clearly improved after the open of the European equity markets.
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KBC