On Friday, data on nonfarm payrolls was released with figures being greater than expected. Now, markets are awaiting the result of Italy’s referendum. Some say there is a potential market gap post Italian referendum. Explore NordFX’s outlook ahead of the event.
3 December, AtoZForex – The referendum in Italy is scheduled to take place this Sunday. There is some uncertainty in the markets as Prime Minister Matteo Renzi vowed to resign in case of a “No” vote. It adds additional pressure on EUR that has already seen the decline following a strengthening USD post Trumps’ victory.
To be aware of potential risks, AtoZForex’s readers have requested information related to whether retail Forex brokers are taking any precautionary measures ahead of the event or not. Therefore, we have reached out to NordFX to attain their view on Italy’s referendum. Below are the comments provided by John Gordon, Head of Analytics Department at NordFX. Along with the possible market outlook post the referendum results.
NordFX’s expectations ahead of the Italian referendum
Ahead the referendum, NordFX decided no to take any special actions. It is possible that this referendum can produce some surprises, but its consequences should not be as dramatic as those of the UK referendum. It relies on the fact that the question does not concern directly the exit of Italy from the EU. Rather it concerns amendments to some articles in the Constitution aimed at reinforcing the hierarchy of power. Even if following the referendum Prime Minister Matteo Renzi resigns, this does not at all mean that Italy will leave the United Europe.
There might be a certain decline in Euro to other currencies in case Renzo loses, however, we do not think it will be quite strong.
Guideline for traders: market gap post Italian referendum
It was some days ago that we sent out a letter to our clients saying that there may be a higher volatility next week as far as the currency pairs related to Euro are concerned. Also, there may be a gap at the opening of the markets on the night from Sunday to Monday. And it should be up to the traders themselves, whether they will trade or not. The task of NordFX is to ensure the high quality of the execution of their trades.
The NordFX Customer Service has been named the best one according to the Forex Expo Awards this year. That is why we do not think we have to introduce any special hotlines, our Customer Service will be working as usual. I am sure that our clients will not face any extra difficulties.
Do you have questions related to NordFX’s view on the Italy referendum result? Let us know in the comments section below.