The ambitious reforms proposed by Prime Minister Matteo Renzi have ended in failure after Italian voted no in the referendum, paving the way for Renzi to resign and a new government to be formed. According to some early stats, the “yes” vote lost by as much as 20.00%, indicating that anti-government sentiment continues to boil over across Europe. Beppe Grillo, leader of the Five Star Movement, is already calling for new elections after polls show his party running neck and neck with Renzi’s Democratic Party (PD). The bigger problem with the result is that the ensuing political instability could make it more difficult for struggling Italian banks to recapitalize and restructure. The result has been a sharp selloff in EURUSD since the open, with the pair reaching the lowest point since March of 2015.