Is the Euro to suffer in Italian Referendum

Will the Euro suffer in Italian Referendum?

Italian citizens will go to the polls this Sunday to vote on constitutional reform. Prime Minister Matteo Renzi is seeking to reduce the powers and size of the senate – the upper house of Italy’s parliament. If he is successful then it will pave the way for Renzi to govern more easily - effectively streamline Italian politics. If he is successful then it would grant him unprecedented powers, which many of the other political parties fear. If he fails to get the required “Yes” vote he has promised to resign which is likely to cause volatility in the markets and euro weakness.

Presently polls have a “No” vote with a slender lead and if this result is realised and Renzi resigns then it may trigger an early parliamentary election. Fears are that beneficiaries of such an election may be the more right-wing anti-euro rhetoric parties. One of these is the Five Star Movement, founded in 2009, which has already enjoyed electoral success this year, winning mayoral races in both Turin and Rome.

This uncertainty is expected to impact the European Central Bank’s decision next week on whether to continue its stimulus programme. Italian banks are anticipated to hold nearly a third of the €990bn unpaid loans to top eurozone lenders. The ECB is therefore likely to temporarily boost purchases of Italian government bonds if the vote sharply drives up borrowing costs.

Current rates:

Thursday 1st December at 08:00

£1.00 GBP = 1.1815 EURO

£1.00 GBP = 1.2542 USD

£1.00 GBP = 1.6933 AUD

£1.00 GBP = 1.7676 NZD

£1.00 GBP = 1.6787 CAD

£1.00 GBP = 17.4837 ZAR

Just imagine if YOU could forecast the exchange rate?

No one can do that of course but being well informed is a start and knowing the events coming up that may influence the GBP/EURO exchange rate may help you with your planning.

The latest quarterly currency market forecasts from the international money transfer experts, FC Exchange, are now available. The reports are essential reading for anyone buying or selling a property, in fact anyone making international money transfers.

The currency markets have always fluctuated, but this year has seen unprecedented levels of volatility. The currency forecasts review the factors that have contributed to the uncertainty we have seen this year and look ahead to the issues that could affect currency markets in the next quarter, moving into 2017.

Grab your Free Report here...

Do you want more information ?

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