EUR/USD update - Italian referendum, 'No' wins - PM Renzi to resign

Author: Eamonn Sheridan | Category: News

The focus has been the result of the Italian constitutional referendum:

EUR update:

EUR bouncing ahead of 1.05
It would appear that's it for the news flow from Italy re the referendum for now.
Expect more in the European morning, but for now the news is out - 'No' wins, Renzi to resign. if there is to be a 'buy the fact' move, now's the time.

The Wall Street Journal have a 'what happens next' (will it be new elections, caretaker PM ... or what?
(I did post on this earlier, this is a repeat ICYMI)
  1. New Renzi Government: Italian President Sergio Mattarella could ask Mr. Renzi to reshuffle his cabinet and form a new government. However, Mr. Renzi has said in recent days that he is unlikely to accept such an option, given that he would be in a much-weakened position following the vote.
  2. A Caretaker Administration .. .Mr. Mattarella could ask someone else to lead a new government with a limited mandate to oversee the drafting of a new electoral law and pass the 2017 budget.
  3. Electoral-Law Snarl:Major political parties are pushing to change an electoral law passed last year that would give extra seats in Parliament to any party winning 40% or more of the vote. That measure was intended to make for more stable governments. Establishment politicians now worry that it could help the populist 5 Star Movement gain power and want to rewrite the rules before any new national election.
And ps. - also this in the news the past hour or so:

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