Posted on 12/04/2016 3:45:55 PM PST by aquila48
The euro slid in Asia on Monday after exit polls showed Italian Prime Minster Matteo Renzi clearly losing a constitutional referendum that could end his career and destabilize the country's shaky banking system.
The single currency dropped to $1.0577 in thin trade, after starting around $1.0645 earlier. The dollar was underpinned by expectations of a U.S. rate rise this month, and even held its ground on the safe-haven yen at 113.20.
Dealers said Italian bonds were set to come under pressure as top-rated U.S. Treasuries and German bunds gained. Asian investors are often reluctant to trade on European developments, preferring to wait for the continent's markets to open.
Investors and Europe's politicians fear victory for the opposition 'No' camp could cause political instability and renewed turmoil for Italy's banks, pushing the euro zone towards a fresh crisis.
Renzi will address the nation around midnight (6.00 p.m. ET).
Ultimately, the danger is that Italy holds a vote on whether to leave the euro, possibly triggering a break up of the entire bloc.
Analysts at RBCCM argued that, based on what happened in 2012 at the height of the Greek crisis, such a risk could see the euro trade as low as $0.8000.
"It may sound extreme, but if a second euro zone crisis were to hit, with the U.S. dollar at a much stronger starting point, EUR/USD could arguably trade lower still," they wrote.
Markets had earlier taken some encouragement when Austria's far-right presidential candidate was soundly defeated by a pro-European contender, confounding forecasts of a tight election.
The European Central Bank also meets Thursday amid much speculation it will announce a six month extension of its asset buying program and widen the type of bonds it can purchase.
(Excerpt) Read more at reuters.com ...
I remember when the Euro was below the dollar—and wouldn’t mind seeing that again.
Give it some time. You will see the Euro completely collapse.
Heh, heh.
The EU is failing.
Heh, heh.
France will be the next country to hit at the EU.
Euro will now hit parity. Nothing can stop that now
It’s not far away - 1.05 right now.
1.055 now and looks to flutter just below 1.06
reuters very sad today. Well not in Austria.
Let it fall. Planning on going to holland next year to visit relatives.
Once France leave the EU is done.
I remember 4DM for the dollar. A bier in Munich cost me a quarter.
That's the real news; if the currency people are skipping the yen and yuan for the dollar, they're putting their money on Trump to overcome any problems in both Europe and Asia.
I found myself in England in ‘80-’81, when the pound hit a painful $2.50.
The Italians have joined the Brits and the Americans. Collectively they have said no to the globalists, no to unrestricted migrations, no to the loss of cultural and national heritage.
Even with uncertainty related to Trump’s election, the US is viewed as a bastion of stability compared to most other countries, and now even the EU. This and rising interest rates in the US will cause a flood of foreign money coming here. Trump’s biggest problem may be the rising dollar, which will limit exports.
Dollar was very strong beginning of last week...it’s starting to dip a bit, probably because of Jill Stein.
They’re dropping like flies.
“John Key is to resign as Prime Minister of New Zealand.”
http://www.smh.com.au/world/new-zealand-prime-minister-john-key-resigns-20161204-gt3z12.html
The Soviet-style EU is dying. I fully expect political and economic shocks to accelerate in Europe as momentum builds.
Women and bankers hardest hit.
Pray America woke
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