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Euro Higher After Italian Coalition Government Agrees On Revised Budget Plan

The euro was higher against its major counterparts in the early European session on Monday, after news that the Italian government has forged a deal with populist leaders to submit a revised budget proposal to the European Commission.

The new revised plan confirmed a deficit target of 2.04 percent of GDP for 2019, down from 2.4 percent proposed in the earlier budget plan presented to the European Union.

Italian Deputy Prime Minister Matteo Salvini said that the revised budget would be "within limits that should please the EU."

Data from Eurostat showed that Eurozone consumer price inflation eased more than initially estimated in November.

The consumer price index rose 1.9 percent year-on-year, which was slower than the 2 percent flash estimate on November 30. The figure is the lowest since May, when it was at the same level.

Inflation eased from 2.2 percent in October, which was the highest since December 2012.

Separate data showed that Eurozone trade surplus decreased a seasonally adjusted EUR 12.5 billion in October from EUR 13 billion in September. Economists had forecast a surplus of EUR 14 billion.

Exports increased 2.1 percent from the previous month and imports rose 2.6 percent.

The currency was trading higher against its major rivals in the Asian session.

The euro climbed to 128.54 against the yen, from a low of 128.10 seen at 5:00 pm ET. The next possible resistance for the euro is seen around the 130.00 level.

The European currency edged up to 1.1292 against the franc, after falling to 1.1270 at 5:45 pm ET. The euro is seen finding resistance around the 1.14 area.

Reversing from an early low of 1.1300 against the greenback, the euro advanced to 1.1344. The euro is poised to find resistance around the 1.14 level.

The euro rose to 0.8995 against the pound, reversing from a low of 0.8963 set at the beginning of today's trading session. If the euro rises further, 0.91 is likely seen as its next resistance level.

The common currency strengthened to 1.5803 against the aussie and 1.5176 against the loonie, from its early lows of 1.5743 and 1.5121, respectively. On the upside, 1.59 and 1.53 are possibly seen as the next resistance levels for the euro against the aussie and the loonie, respectively.

The euro held steady against the kiwi, after rising as high as 1.6668 at 9:30 pm ET. The pair closed last week's trading at 1.6628.

Survey from BusinessNZ showed that New Zealand services sector continued to expand in November, albeit at a slower pace, with a Performance of Services Index score of 53.5.

That's down notably from 55.4 in October, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

Looking ahead, Canada existing home sales for November, New York Fed's empire manufacturing survey and U.S. NAHB housing market index for December are due in the New York session.

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