The Euro hit its highest level since mid-November, as markets shrugged off the outcome of the Italian constitutional referendum. Now it stands at $1.07 against the US dollar, almost 1.5 cents above Sunday night lows. Last night, after the Italian Prime Minister Matteo Renzi conceded defeat in a referendum over his plan to reform the constitution and announced his intention to resign, the single currency tumbled to a 21-month low. However, following this morning’s events, it climbed to its highest level since November 17, after investors bet against an immediate snap election.
Despite the outcome of the referendum raising political uncertainty in the Eurozone, European bourses appeared unfazed by the result. Also following Renzi’s resignation, the €5 billion rescue plan for Italy’s oldest bank Monte Paschi was thrown into doubt. However, they have since turned positive and are now trading up 1.5pc. Traders and investors learnt from Tump and Brexit, to buy on short term weakness. However, no one quite knows where this referendum vote takes Italy. It could lead to Italy’s eventual departure from the EU.