The single currency could extend its recovery versus the greenback today to be trading currently close to 1.2140 which is its highest reached level since the end of 2014.
As EURUSD could resume today its creeping pushed by released news about reaching outlines for forming grand coalition between Angela Merkel’s CDU/CSU and her former coalition partner SPD party.
The markets will be waiting ahead in the coming weeks for more details about that renewed coalition which can bring back confidence in the political stability in Germany.
After that skeptical which lasted for more than 3 months in Germany, This breakthrough can pave the way now for ending the uncertainty about the German political situation.
EUR has been already boosted following the release of the recent ECB meeting minutes which underscored the governing council members' interest in providing gradual guidance to tighter Monterey policy.
The ECB looked confident more than before in the economic recovery and the inflation upside risks in EU which can warrant tightening of the credit conditions, after an era of fighting the deflation pressure on the prices.
The ECB minutes could underpin the Germane governmental bunds yields curves making the single currency much more attractive.
The germane 10 years bund yield started the new year close to 0.43% and now it is near 0.60% gaining about 25%, while the money markets are waiting now for information about Germany fiscal plans.
As Merkel promised of retaining in office the Finance Minister Wolfgang Schaeuble who wants to keep the governmental fiscal surplus every year until 2020 showing less probability of imposing new reflation plans in Germany.
Wolfgang's view can support the germane Bunds prices and lower their yields by sustaining the fiscal situation of the germane government, but in the same time he can cap the germane equities holders from having new reflation boost in the coming years.
While The SPD candidate Schulz was looking for boosting the economy further by new reflation plans
Schulz has promised to cut taxes for anyone earning less than €60,000 and also to reduce the social security contributions for those who earn up to €15,000 a year.
but he was eager to raise taxes for top earners in the same time to finance spending €30 billion more on public investments by 2021.
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
As EURUSD could resume today its creeping pushed by released news about reaching outlines for forming grand coalition between Angela Merkel’s CDU/CSU and her former coalition partner SPD party.
The markets will be waiting ahead in the coming weeks for more details about that renewed coalition which can bring back confidence in the political stability in Germany.
After that skeptical which lasted for more than 3 months in Germany, This breakthrough can pave the way now for ending the uncertainty about the German political situation.
EUR has been already boosted following the release of the recent ECB meeting minutes which underscored the governing council members' interest in providing gradual guidance to tighter Monterey policy.
The ECB looked confident more than before in the economic recovery and the inflation upside risks in EU which can warrant tightening of the credit conditions, after an era of fighting the deflation pressure on the prices.
The ECB minutes could underpin the Germane governmental bunds yields curves making the single currency much more attractive.
The germane 10 years bund yield started the new year close to 0.43% and now it is near 0.60% gaining about 25%, while the money markets are waiting now for information about Germany fiscal plans.
As Merkel promised of retaining in office the Finance Minister Wolfgang Schaeuble who wants to keep the governmental fiscal surplus every year until 2020 showing less probability of imposing new reflation plans in Germany.
Wolfgang's view can support the germane Bunds prices and lower their yields by sustaining the fiscal situation of the germane government, but in the same time he can cap the germane equities holders from having new reflation boost in the coming years.
While The SPD candidate Schulz was looking for boosting the economy further by new reflation plans
Schulz has promised to cut taxes for anyone earning less than €60,000 and also to reduce the social security contributions for those who earn up to €15,000 a year.
but he was eager to raise taxes for top earners in the same time to finance spending €30 billion more on public investments by 2021.
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
