Latest weighing on EURO is the Italian coalition program draft

On the Liveblog earlier I reported about Iran-Eu nuclear pact negotiations not going smoothly, then NK threatening to cancel SK’s summit.
Past few hours it are the  5Star-League coalition program leaks causing a stir. What they’re proposing is:

– Put the citizen’s income tax in 2 brackets of 15 and 20% which would cost the state about 70-80B €
– Scrap pension reform which should cost about 17B€
-Introduce a new welfare plan which would cost about 20B€
-To ask ECB to forgive 250 billion of the public debt, well ask EU to pay for the above basically
Then politically:
-Introduce specific procedures that allows single member states to reject the Euro and recover monetary sovereignty 
or to stay out of the Monetary Union through a opt-out clause
 -To start a path of agreed output (of the Euro) in case of clear popular will”
-A discussion on the EU treaties is needed, the stability and growth pact needs to be radically modified( going back to a pre-Maaastricht situation)
-renegotiate the Italian contribution to the EU

-ask for an immediate end to Russian sanctions for Russia to become a strategic partner again

But this is “an old version” as they say(14th May…) as the new one specifies they ” do not put in to question the single currency” …
We can expect a wave of reactions come tomorrow from ECB and/or the EU

EUR and risk has come off another leg across the board in the past few hours on this. In the context of Iran/Turkey/Israel/ and the rest of the ME/ NK, I’m feeling pretty confident with the short EURJPY I opened earlier today @ 130.82, which roughly coincides with the bottom of the daily cloud, expected to cap the debates for now.A break under 130.00 should set us up for a retest of the 8th May lows at 129.25 unless a positive surprise would hit the wires.
Another barometer is EURCHF: It’s trading in the previous (SNB?) support zone 1.1835/40 writing this. A break should put doubts in players’ minds, a quick visit at mid 1.17s or even 1.1670 is very possible and could drag EURJPY down in sympathy.
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