New Italian PM alarms the markets

• The new PM of Italy delivered his first speech in the Italian Senate alarming the markets and passing a confidence vote.
• Italy’s PM Mr. Conte promised a minimum “citizen’s income”, as well as curbs on immigration and a “radical change”.
• The speech caused a sell off for Italian bonds causing the EUR to rise.
• Should the new government go ahead with it’s plans, it may clash with Brussels as the Italian economy remains in a fragile position.
• After passing the confidence vote in the Lower house today, the new government will be fully empowered.
• Should there be further negative headlines about Italy and the Eurozone, we could see the common currency weakening as instability rises.

UK’s Labour Party favors single market with EU

• Media reports stated that UK’s Labour party leader Corbyn, placed an amendment to Theresa May’s Brexit legislation.
• The amendment would force the UK government to practically pursue in the Brexit negotiations for the UK to remain in the single market with the EU.
• The amendment is to be voted on, probably next week and will require votes from the conservative party to pass.
• Should there be any further instability in the UK political scene about Brexit we could see the pound weakening.

Today’s other economic highlights

1. US: Trade Balance for April, Survey: -49.00B Prior: -49.00B, 12:30 (GMT), Neutral to bearish for USD
2. US: EIA weekly crude oil inventories, Survey: -1.824m Prior:-3.620m, 14:30 (GMT), could strengthen oil prices
3. Canada: Building Permits for April, Survey: +2.0% mom Prior:+3.1% mom, 12:30 (GMT), could weaken CAD
4. Canada: Trade Balance for April, Survey: -3.4 B Prior:-4.14 B, 12:30 (GMT), could strengthen CAD
5. Canada: Ivey PMI for May, Survey: 69.7 Prior:71.5, 14:00 (GMT), could weaken CAD
6. Speakers: ECB’s Peter Praet (07:00, GMT) and BoE’s Ian Mc Cafferty (16:00, GMT) speak

IronFX Daily Report ‘June 6th’