Berlusconi Budget Vote Hits EUR

The question now is will there be pressure for a vote of confidence and/or more pressure for the leader to resign.

Opposition leader Bossi, says Italy runs risk of losing access to financial  markets in the coming days.

He also says that vote shows Berlusconi government no longer has majority.  Berlusconi party has 308 votes – enough to pass the vote – but lacks the majority within the coalition government that has been in place. So the coalition is falling apart and they will likely force a resignation from Berlusconi.

The EURUSD has fallen on the news and trades back below the 1.3800 currently. The 1.3812 level will be eyed above. Other support at the 1.3783 which is the 50% of the days range and bottom channel support.