The euro has weakened against the US dollar at the start of the week as the market sentiments are getting worse on the budget conflict between Italy and the EU.
As the data shows, the euro-to-US dollar exchange rate decreased $1.1475, which quite close to the last-week bottom of 1.1463.
At the same time, the US Dollar index improved to 95.57. The greenback rebounded vs the majors on generally positive economic reports.
Last Friday, the US labour market report showed that the number of new jobs in September reduced increase, which is said to be connected with the recent hurricane that hit the USA. Still, it is worth mentioning that the unemployment rate was the lowest almost over a half-century.
Meanwhile, the euro has remained on the downward track fueled by the message of Deputy Prime Minister of Italy Matteo Salvini saying that EU's real enemies – Juan Claude Juncker and Pierre Moscovici.
According to the news reports, the Italy-EU conflict is related to the disagreements on the 3-year Italian budget draft since it crossed the EU requirements regarding the high deficit and heavy debt burden. This weekend Italy noted that would keep following its path. After that loans price soared in Italy entailing concerns about the new budget crisis.
Additional pressure came from the euro area economic reports with investors downgrading October outlook afterwards.