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How has the euro faired after the Italian referendum?

The euro was initially rattled this morning following the defeat of Italian Prime Minister Matteo Renzi in his failed attempt to stabilise the country’s banking system with a referendum on constitutional reform.

But, in what’s been a volatile morning of trading, the euro has now jumped to its highest level in more than two weeks as markets shrugged off the outcome of the vote.

However, the decision of the Italian people represents another potential blow to the European Union, with volatility of the euro reflecting the political instability sweeping the continent at the moment.

The Italian Prime Minister has stated that he will resign following his heavy defeat, and both the media and the markets will be watching closely to see what this means for the stability of the Eurozone.

Meanwhile, in the past week Sterling has gained on the euro by almost 2%. With the pound experiencing its fair share of volatility too, the recent pressure on the euro has seen the pound push past a high not seen since early September against the single currency.

Up next in the seemingly never ending round of potential volatility comes the launch of the UK Government’s appeal to the supreme court against the previous decision to stipulate that Parliament must have final say on any potential Brexit deal which is brokered. The result of this hearing is likely to have far reaching impact on the value of Sterling against all of the major global currencies…

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In what’s set to be a politically charged week across Europe, and an unsettled euro willing to react at any moment, we’d highly suggest getting in touch today. We’ll simplify political developments for you, provide currency insights and make sure you make the most of your overseas money transfers. Contact us on +44 (0) 20 7847 9414 or email customer.s@currenciesdirect.com.

Best wishes

The Currencies Direct team

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