EUR/USD Set for Volatility with Italian Referendum, ECB Rate Decision in Sight
While a ‘No’ outcome would feed into the growing mindset that economic populism is sweeping the West’s advanced economic democracies, it would more or less keep the current political system in Italy in place; the status quo would persist. Markets might act worried initially, selling EUR/USD and Italian equities in the neighborhood 1-3% and 2-4% on the results. EUR/USD could move to test the 1.0462 cycle low established in March 2015.
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