Euro down on german elections
|The Euro has taken a hit in today’s trading session on the back of shock election results from the Eurozone that adds to the already existing political instability.
At 11.20am (GMT) the European currency was trading at $1.1859, down from $1.1961 in yesterday’s trading session.
Although German Chancellor Angela Merkel is expected to form a coalition and remain in government, it was the rise of the far right party that caught everybody off guard when the far right AFD party picked up 13.5 percent of the vote making it the first time such a party has entered German politics since 1949.
It follows on from a number of other European countries who have suffered the same fate which many blame on the flood of refugees entering Europe leaving the Eurozone barely coping,
"Merkel’s diminished authority and the rise of a party with links, and similar Eurosceptic views among other things, to UKIP and France’s National Front appears to be weighing on both the euro and the region’s indices," wrote Connor Campbell, an analyst at SpreadEx.
The Euro is likely to stay under pressure until Friday when retail sales figures from Germany hit the market along with CPI figures from the Eurozone.
If the CPI figures come in strongly investors may be willing to overlook the German election results and the Euro may continue its winning streak.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.