After brief lift, EUR/USD is back under pressure and breached Friday’s low at 1.1643. The pair was initially lifted briefly by news that the antiestablishment coalition of 5-star movement and the League failed to form a government.
But quickly into European sessions, sentiments turned sour again as markets weigh the chance and impact of a new election that could happen as soon as in August.
Italian 10 year government bond yield dipped to 2.35 but is now back at 2.590, up 0.038.
German 10 year bund yield initially rose to 0.463 but reversed to 0368 so far, down -0.037.
Widening German-Italian yield spread is now pressuring Euro broadly again. Euro is trading down against all but swiss Franc and Canadian Dollar.
