Intra-Day News and Views EUR/USD
|Intra-Day Market Moving News and Views
05 Dec 2016 00:08GMT
EUR/USD - The euro dropped in early Asian trade on Monday after exit polls showed Italian Prime Minister Matteo Renzi suffered a heavy defeat in a referendum over his plan to reform the constitution.
The euro dropped 0.6 percent to $1.0585, edging closer to its 1 1/2-year low of $1.0518 touched late last month. Against the yen, the common currency fell more than 1.0 percent to 119.70 yen.
Italian Prime Minister Matteo Renzi has staked his political future on the referendum, and many market players expect him to step down. Renzi will address the nation at around midnight (2300 GMT), government sources said.
Political instability could undermine Italy's fragile banking system especially when Monte dei Paschi di Siena, the country's ailing third biggest lender, needs to raise 5 billion euros by year end to avert the risk of being wound down.
Italy's Prime Minister Matteo Renzi has lost a referendum on constitutional reform by a wide margin, exit polls showed on Sunday, throwing his future into doubt and opening the door to renewed political instability in Italy. Renzi, who had promised to resign if his flagship project was defeated, is due to address the nation.
An exit poll by the Piepoli Institute/IPR for state television station RAI, estimated the 'No' vote at 54-58 percent against 42-46 percent for 'Yes'. Two other polls gave 'No' a similar lead of at least 10 points. Voting ended at 11 p.m.
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