Euro under pressure

Italy and the EU are headed for a Mexican standoff on the budget and the market is souring by the moment. It's an open question on how much the latest drop in EUR/USD is about Italy and how much is about broad risk sentiment but since this time last week, the euro is the second-worst performing G10 currency, leading on GBP.

Technically, EUR/USD is in a delicate place as it threatens the October lows.

A close at current levels or anything below 1.1478 would be the lowest since August 20, nearly two months ago.