The Italian Treasury expects the economy to contract by 3% in 2020 amid lockdowns imposed by the government to battle the coronavirus outbreak, Reuters reported on Friday, citing two sources familiar with talks.

“The whole EU budget planning exercise could be scrapped and in this case, Italy wouldn’t have to present the forecasts by the end of next month, this is something being discussed at the EU level,” one of the sources told Reuters.

EUR/USD REACTION

The EUR/USD pair edged lower slightly on this headline and was last seen trading at 1.0700, adding 0.09% on a daily basis.