Italians go to the polls on December 4 to vote on prime minister Matteo Renzi’s constitutional reform bill. Saxo Capital Markets’ macro strategist Kay Van-Petersen looks at trading opportunities surrounding the event.

He says that market reaction on the Monday morning after the vote could be hard to predict with polls in recent elections not proving reliable.

But Van-Petersen, who says a ‘Yes’ outcome would lead to a less dovish European Central Bank, says the result could trigger a EURUSD squeeze, providing opportunities to short. 

He says he is also keeping a close eye on the FTSE MIB (Italian equity index).