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Weekly roundup: Euro undermined by German election uncertainty

currency-newsWeekly roundup: Euro undermined by German election uncertainty
Trade in the euro was mixed last week with investors growing cautious towards the currency ahead of Germany’s federal elections as polls suggested they were too close to call.

EUR investors were also naturally unsettled by the prospect of Angela Merkel stepping down as Chancellor, after acting as such a stabilising presence at the helm of the Eurozone’s largest economy for 16 years.

Infusing additional volatility into the euro was the publication of the Eurozone’s latest PMIs.

September’s preliminary figures revealed economic growth in the bloc’s private sector slowed more than expected this month as supply chain constraints undermined activity.

Turning to this week, the extremely close result of the German election prompted some weakness in the euro as the start of the session, as EUR investors now face prolonged uncertainty due to the prospect of lengthy coalition talks.

Still to come is the Eurozone’s latest consumer price index, which is forecast to report Eurozone inflation soared to 3.3% in September. But will this be enough to convince the European Central Bank (ECB) to rethink its current dovish stance on monetary policy?
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

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