EncoreFX’s daily market updates are written by our experienced and professional dealing team.
Italy’s Controversial Budget | EU Proposes UK Customs Union
Published October 23, 2018
The European Commission is set to decide on whether to formally demand Italy to revise and resubmit its budget. The European Commission had already issued a warning letter about the budget last week. Italy’s coalition government has stated that it “won’t change”.
The EU has proposed to Prime Minister Theresa May a UK-wide customs union as a way around the Irish backstop issue, but it will have to be negotiated beyond the Withdrawal Agreement as a separate treaty. May outlined UK demands for an agreement yesterday to parliament, such as the commitment to a temporary UK-EU joint customs territory.
Oil prices fell this morning after Saudi Arabia stated it would play a “responsible role” in energy markets. The price of West Texas Intermediate Crude subsequently dropped to $68.25 as Saudi Oil Minister Khalid Al-Falih proposed the Kingdom would hike output to as high as 11 million bpd.