Italian referendum: Too many no's, Renzi goes - HSBC

Sandeep Kanihama FXStreet Contributor

Fabio Balboni, European Economist at HSBC, notes that after a strong rejection of constitutional reform in the Italian referendum, Prime Minister Matteo Renzi resigned.

Key Quotes

“We still believe that there won’t be a snap election, as we do not think that the president will send the country to new elections before parliament has approved a new electoral law for the upper house of parliament. However, the strong rejection could open a new period of political instability in Italy, and the Eurozone, causing a negative market reaction and possible concerns about the future of the single currency.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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