Forex Flash: Political uncertainty continues in Italy - BTMU

Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that political uncertainty still remains elevated in Italy with the center-left parties led Bersani attempting to reach an agreement with other major parties to co-operate in the Senate after only securing a majority in the Lower House.

He writes, “Bersani’s hopes of securing co-operative agreement with the Five Stars Movement have been reduced following comments from Grillo yesterday stating that his party would not give a vote of confidence to a new government led by either center-left or centre-right parties. It suggests grand coalition between center-left and right parties may be the only viable option left to form a workable government although likely unstable.”