The return of Euroscepticism as Italy's 5 Star Movement and the League reach an agreement

On Sunday evening in Italy, what is arguably the biggest eurosceptic alliances in Europe, leaders of Italy’s far-right League party and populist 5 Star Movement on Thursday moved closer to creating a coalition government. 

Negotiations continue and are including who will be prime minister. Overall, this is potentially putting an end to more than two months of political gridlock, however, there are concerns over the coalition that may hurt Italy’s relationship with the European Union and throw the Italian economy into disarray.

There was little reaction in the market to this news from the weekend and the euro is consolidating the minor correction to 18th Aprils supply and 23rd April's extension below the key support line.