Breaking News: EUR/USD crashes on the Italian crisis


The Italian government decided to set a 2.4% budget deficit, defying European demands. The populist parties are striking an anti-European tone in defending their decision. Finance Minister Giovanni Tria remains in his job for now.

Interior Minister Salvini says:

Italians' Right To Jobs And Pensions Come Before EU ‘Bureaucrats

The Italian stock market is crashing and bond yields are soaring. Italy has a high debt-to-GDP ratio of around 130%. 

The EUR/USD falling to the lowest levels in two weeks, well below 1.1600. Critical support is at the triple bottom of 1.1530 ahead of the round 1.15 level. Resistance is at 1.1605.

Here is the EUR/USD move. Click on the image to see a live chart:

	Breaking News: EUR/USD crashes on the Italian crisis

Tria wanted a budget deficit of 1.6% and the Europeans wanted 2%. EU Commissioner Moscovici warned about Italy's "explosive debt" and said that the budget will be examined after October 15th. 

Trading in some Italian stocks was halted due to the sharp falls. 

The effect of the crisis spread to other currency pairs with the GBP/USD sliding towards 1.3000 and the safe-haven yen finding demand.


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