Euro rose on Monday against a basket of global currencies to continue its gains for the second day in a row against USD, supported by the rise in Italian bond yields after Moody’s removed the threat of a downgrade of Italian debt. Investors are closely following developments around the budget. While waiting for the Italian government to respond to EU comments on budget deficit and government spending levels.

Euro rose against the dollar by more than 0.2% as of 07:35 GMT, trading at $ 1.1543, the opening price of $ 1.1515 and the highest at $ 1.1550 and the lowest at $ 1.1498.

Euro ended Friday’s trading up 0.6% against the US dollar, its first gain in four days, recovering from a two-week low of $ 1.1433, as the US currency halted against a basket of major and minor currencies.

European currency fell 0.3 percent against the dollar over the past week, its third weekly loss in a month, on strong prospects for the Federal Reserve to continue tightening US monetary policy and raising interest rates for the fourth time this year.

In Italy, long-term bond yields jumped and the stock market rose after Moody’s downgraded the rating by removing the threat of a sovereign debt rating downgrade.

Within the same framework, investors are closely following the Italian government’s response to EU comments on the 2019 budget deficit and government spending plans. The European Commission on Thursday sent a warning to Rome on the breach of fiscal discipline in Europe, giving until Monday a clear response from the government to Which would eventually lead to sanctions against Italy.

Italy has set its budget deficit next year at 2.4% of gross domestic product higher than the EU’s financial controls, which will weigh heavily on the Eurozone’s third largest economy, which is heavily burdened with huge debt.