BANK OF TOKYO MITSUBISHI REPORT ON THE EUR

Bank of Tokyo Mitsubishi advise its clients that the growing risk of a fresh Italian election is EUR negative but downside likely to be limited from here.

"There have also been further developments in Italian politics in recent days. Italy’s president Sergio Mattarella held final talks yesterday to form a government which failed. It has increased the likelihood that unprecedented fresh elections could be held later this year.

On balance, we continue to view the negative political developments in Italy as euro negative but they are having only limited impact on the currency," BTMU reports.

TECHNICAL ANALYSIS ON GBPJPY