The Euro was under further pressure today against the US dollar on the back of political instability in Italy and, bringing it closer to parity with its American counterpart.

At 7.07 pm (GMT) the European currency was trading at US1.0596c after reaching a high of US1.0685 earlier in the trading session.

A referendum called by Italian president Mario Renzi on December 4^th threatens to bring down the Italian government if he loses, which may pave the way for the Five Star Movement political party who have promised if elected, to hold another referendum on whether Italy should remain in the EU.

Some are predicting the instability may see the Euro equal with its US counterpart in the not to distant future.

Jim Mellon, the chairman of the Burnbrae Group, who was one of the few people to predict Brexit thinks Italy is just the beginning of Europe’s problems and the whole Eurozone is on the Brink of falling apart,

Brexit is going to be a sideshow to the problems of Europe that are becoming more and more evident,” Mellon said

“The euro as it stands at the moment is just a very inappropriate mechanism,I give the euro between one and five years of life,” he added.