EU decision on Mercosur should come before 16:00GMT, Politico reports. Examination of the safeguard text will begin at around 10:00GMT.

• Italy is reportedly still weighing how much backlash it can absorb before agreeing to the deal, according to the diplomats cited. Italy continues to edge closer to supporting the agreement.

The EU's imminent decision on the Mercosur trade agreement could significantly influence Eurozone trade dynamics, especially given Italy's cautious approach. The potential for Italy to align with the agreement suggests a shift in consensus that might enhance trade relations with South America. Watch for impacts on the euro and German bonds as the agreement progresses toward approval.