ForexLive Americas Wrap: I Think We've all Learned a Few Things About Italian Elections

Berlusconi-led Centre Right holds lead in Senate race No party or natural alliance has majority in Senate Bersani-led Centre Left holds narrow lead in lower house election Hung Parliament and second election likely in Italy BOC's Carney warns that Canadian data has been “breaking to the downside” Nikkei reports DPJ set to approve BOJ nominations Chicago Fed January national activity index -0.32 vs +0.25 prior S&P 500 down 1.8% to 1488 JPY leads, EUR lags I haven't had this much fun in a while. The market was expecting a Bersani win but Berlusconi has risen from the dead once again. The market is dealing with the possibility of another election with no party looking like it has enough support. The votes continue to be counted. The very first polls showed a strong result for Bersani and that propelled EUR/USD above 1.33 but as Senate results began to trickle in the opposite was obvious. A trickle of euro selling turned into a flood as 1.32 and then 1.31 gave way. The run on the yen crosses started out as a slow burn. But when 93.20 broke the market started a slow-motion panic attack. Late in the day, souring risk sentiment broke 92.30 and the bottom fell out.