Forex Today: EUR dumped after Italy votes No, services PMIs eyed

The majors witnessed two-way trades in a volatile Asian session, with the shared currency losing the most after the Italian voted a No in Sunday’s elections to make amendments to the Italian constitution. Italy’s PM Renzi accepted his defeat and called to resign from the PM’s position, which stirred massive volatility in the Asian opening trades.

However, risk-off sentiment eased somewhat towards the latter part of the Asian hours, as upbeat Chinese services PMI and a broad based recovery in commodities helped restore investors’ confidence.

Heading into Europe, markets will closely monitor reaction from the European traders, as they digest the outcome of the Italian referendum. While calendar-wise, a flurry of final services PMI readings from Euro area will be eyed ahead of Eurozone Sentix, retail sales and ULK services PMI data. While from the US docket, the ISM services PMI and      Labor market conditions data will hog the limelight, apart from the speech from FOMC member Dudley.

Main topics in Asia

Italian referendum: 'No' wins in most regions

According to the latest projections in the Italian referendum, the 'No' has won in 16 Italian regions, while the 'Yes' won in 3. 

Italian referendum: PM Renzi concedes defeat, intends to resign

Italian PM Renzi is speaking, noting that today's referendum shows a  clear win for 'no'.

NZ PM Key will not stand for re-election in 2017

NZ PM Key will not stand for re-election in 2017, noting that he will resign.

New Zealand Treasury report points to solid Q3 GDP

New Zealand Treasury report for November released today says the robust labor market and retail sales data point to a solid Q3 GDP.

China 's November Caixin Services PMI beats expectations

China 's November Caixin Services PMI came at 53.1 vs 52.4 last, while composite was 52.9 (unchanged).

Key focus for the day ahead

GBP/USD: 100-DMA caps recovery ahead of UK services PMI

After witnessing a volatile Asian session this Monday, the GBP/USD pair is seen trading with moderate losses just below 1.27 handle, with markets awaiting UK Supreme Court hearing and services PMI report for fresh incentives.

UK Supreme Court to hear PM May’s challenge to overturn high court ruling

The UK Supreme Court will have a final say on whether MPs will get a chance to vote on the triggering of Article 50.

AUD: Inflation remains low, but risks of another shock weak report are fading - TDS

Research Team at TDS, notes that the Australia’s Nov monthly inflation gauge rose by +0.1%/mth, leaving the annual rate at +1.5%/yr.

AAP Survey: RBA expected to hold rates into New Year

A majority of the economists surveyed by AAP noted that the Reserve Bank of Australia (RBA) is likely to leave its rates unchanged until the middle of next year.