The euro is losing grounds against the US dollar and yen facing expanding concerns about the policy of new parliament in Italy.
According to the news reports, Italy's prime minister Giuseppe Conte has released the budget stimulation programme, which actually conflicts with the EU budget standards.
The new parliament is going to implement all populist measures announced during the election campaign, including benefits for the underclass, tax reduction and immigration limitation.
The officials stated that the budget stimulation for the first full year will amount to some EUR 126 billion.
In this situation, the yield of 10Y state bonds hiked by 12 base points to 2.65% per year for the first time over 5 sessions. The bonuses for Italian bonds were 226 basic points against similar notes of Germany.
The euro-to-US dollar rate fell to some $1.1664 ($1.1699 earlier), while that to yen dropped to 128.06 (128.46). Meanwhile, the American currency also rose against the yen reaching 109.84.
At the same time, the Canadian dollar faced pressure from increasing concerns about the next NAFTA agreement. Specifically, the US senator commented that the deadline for the US Congress approval of new agreement has expired. This means that the NAFTA parties can enter into a new agreement only in 2019, as reported in the media.