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Session Recap: Risk Aversion takes the market; Yen higher, Euro lower

Market has experienced an up-and-down session with early rallies but later declines. Yen rose to 1-month highs against its major competitors and the Euro tumbled hard against the GBP, the mentioned Japanese Yen and the USD dollar. Stocks post big loses too.

The outgoing results in the Italian elections hurt the market confidence and the possibility of a hung parliament weights over market. There is a possibility to a second election and the EUR/JPY tumbles around 600 pips, the USD/JPY 330 pips, the EUR/USD close to 260 points and the EUR/GBP almost 200 pips.

The result in Italy is yet uncertain, with Bersani leading the run but with a tight marge against Berlusconi in both Congress and Senate. Beppe Grillo will decide the short term future en Italy as he can make coalition with any group or event force new elections. Mario Monti has just gotten the 10% and said he wasn't governing for popularity.

Main Headlines in America:

American equity markets open positively Monday

Forex: GBP/USD tests 1.5100 for support

Fundamental Afternoon Wrap: EUR up on Bersani Trade

Forex: EUR/GBP reaches 16-month high

Forex: USD/JPY sets back to daily lows

Forex: EUR/USD regains 1.3200

Berlusconi refills his possibilities and has 31.9% votes to Senate according to projections

European equity close

Euro sinks, Italian yields storm back with Berlusconi possibly taking Senate

Euro driven by elections' headlines

Forex: USD/CAD testing Friday’s tops, around 1.0260

US markets trading mixed on Italian elections

Forex: EUR/USD falls to fresh 6-week low

Forex: US Dollar Index in session highs, around 81.90

Yen crosses break hard

Forex: EUR/JPY collapses to 1-month lows

Fears of a hung parliament grow in Italy

Forex: USD/JPY falls below 91.00 to Feb minimums

Forex: EUR/USD falls to 1.3050

Forex: Epic falls in all Yen crosses; Hedge funds unwind massive longs

RBA’s Debelle: Says RBA can cut rates to counterbalance $A

Wall Street tumbles on Italy election fears

Italy's Bersani far from majority in Senate; hung parliament looms

With 95.4% of constituencies scrutinized, the center-Bersani (29.67%) has taken a minimal 0.6% lead ahead of the center-right coalition led by Berlusconi (29.03%). Grillo obtained 25.53% of the votes and 10.58% go for Monti's.
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