EUR/USD After The Italian Referendum

The Italian referendum was rejected as close to 60% of voters opt for "no". Italian prime minister Matteo Renzi said he will resign as a result of the failed referendum. In the opening hours of the trading day, the Euro slipped to a fresh 20-month low against the dollar going as low as 1.0505. 

Now the pair has slightly recovered and is trading at 1.0585. The referendum seriously damaged the Euro against its major counterparts and now with these new lows everything can happen. It is a time of great uncertainty on the global scale as governments fail, rulers resign and new order appears. 

Only with time we can know for certain what is good for the global economy as current market environment reacts based on fear and greed which of course is not a true indicator of the real market conditions. 

Until December a lot more is about to happen as the US will most likely raise rates which can boost the dollar even further and we might see parity in the EUR/USD for the first time since 2002.

Chart: EUR/USD H1