The voting results are putting pressure on the Euro. Overview for 25.09.2017

The EUR/USD pair is retreating on Monday after they announced the results of the elections for the Bundestag.

The main currency pair is falling at the beginning of the last September week. The current quote for the instrument is 1.1910.

Today’s “hot potato” is the results of the elections in Germany. The Christian Democratic Union of Germany. CDU, won 33% of votes and took 246 seats in the Bundestag. Another 20.5% of votes went to the Social Democratic Party of Germany, SPD. In both cases, the CDU and the SPD, these numbers are the worst since the moment the current political structure of Germany was introduced. The political system is about 70 years old, but the results are weak for both parties. For the first time, the party called Alternative for Germany will have its representatives in the Bundestag. The party itself didn’t expect such results as it turned out to be the third biggest party in the German parliament.

At first sight, the results are looking quite neutral, but in reality they show that the party led by Angela Merkel has to bring some of the less interesting politicians to its side in order to form a coalition. Otherwise, the SPD along with the opposition will “bury” all political initiatives important to the CDU.

This is why the Euro is retreating. The fact that Merkel has kept her place as the Chancellor of Germany for the fourth time in a row is good for the currency, but everything else makes investors think, at least.

Any comments relating to possible growth of political tensions in Germany will force the EUR/USD pair go down.

RoboForex Analytical Department