Euro dropped in early Asian Trade due to political improbability

European equities

Monday, the single currency collapses in early Asian trading right after Germany’s election presented massive support for a party that left Germany’s Chancellor: Angela Merkel clambering to form a governing alliance; after  her conservatives lost support by the anti-immigration: AfD or Alternative for Germany.

In accordance to this, although gaining the most votes, Chancellor Angela Merkel’s union collapsed to its worst results since 1949, along with her current Social Democrat alliance partners who claimed that they would go into opposition after dropping to 20.7% in projections. In addition, Peter Schaffrik, global macro strategist at RBC Europe in London claimed that the most essential announcement after the election was the current junior coalition partner: SPD, which suddenly announced that it would go into opposition.

Peter Schaffrik also said that the withdrawal by the SPD or the Social Democratic Party of Germany, they think that the only realistic option left for Chancellor Merkel, is a union of her CDU/SUS, the FDP or the Free Democrats and the Greens or the Jamaica coalition. However, building a collation could approximately take months.

The single currency dropped to as much as 0.5% to $1.1986 and last traded at $1.1933 which was down by approximately 0.2%, these numbers holds support of approximately around $1.1860.


Leave a Reply

Your email address will not be published.