The Euro was crashed by the German politics. Overview for 20.11.2017

Germany.

The EUR/USD pair is “losing weight” on Monday. The current quote for the instrument is 1.1740.

The main reason for this is the news that came from Germany. It became known today that Angela Merkel’s party, the Christian Democratic Union of Germany, couldn’t form a governing coalition in Bundestag, which was elected two months ago. Merkel and her colleagues had long negotiations with the Free Democratic Party and “Greens”, but both of them rejected.

The FDP politicians had already mentioned that they came to bundestag to change the political system, and if it didn’t work, it would be better not to take part in the process at all. “Greens” also don’t like many things in the policy carried out by the Christian Democratic Union of Germany. However, Merkel said in the past on several occasions she wasn’t going to govern a country being in a minority.

Today, she is meeting, Frank-Walter Steinmeier, the President of the Federal Republic of Germany, who has to propose a new candidate for the Chancellor position or announce new parliamentary elections. Politicians have very little time left, about two weeks, so the country’s political order is pretty close to entering into state of crisis.

This situation is surely not pleasant for the Euro. Probably, this negative news may be covered by today’s speech to be delivered by Mario Draghi, in case he says something positive relating to the ECB’s monetary policy and the QE program.

RoboForex Analytical Department