You can tell things are expected to be quiet – Happy Thanksgiving by the way to my American friends – when this column turns to those great philosophers Ozzy Osborne and Clint Eastwood for inspiration, let alone – and this is not for the first time – going all “Oliver Stone” on you. Either way, I suspect December is going to be a very interesting month, to finish off a quite extraordinary year in terms of peoples’ ability to get things wrong.
The euro came under pressure in early Asian trading Monday as first exit polls and then results indicated a strong majority rejecting the proposed changes to the Italian constitution.
The referendum was widely seen as a vote on the Italian government and Prime Minister Matteo Renzi quickly followed through on his promise by saying he would offer his resignation to the Italian president Sergio Mattarella. Early indications have the ‘No’ camp winning in the region of 60% of the vote.
EUR/USD fell steadily rather than spectacularly in early Asian trading, having opened at 1.0670. It ground lower to touch 1.0508 as Renzi announced his resignation, but then bounced to 1.0550.