Single Currency is Steady
The singe currency is holding still. Euro/dollar rose 0.09% and it’s trading at 1.1797. Eurozone Consumer Price Index Flash Estimate stayed at 1.5%. German Retail Sales dropped 0.4%, unemployment claims declined 23K. The United States will release Personal Spending and UoM Consumer Sentiment. US final Q2 Gross Domestic Product accelerated 3.1%. But, this quarter’s numbers, especially the employment ones, might weaken due to weather disasters in Texas and Florida.
Angela Merkel won the election and became a Chancellor. Christian Democratic Union got 33% vote. But, there is a coalition left to form. The main candidates are Federal Democratic Party and the Greens. This will be the first time since 1950s that German parliament has a 3-party coalition. Angela Merkel has administered Wolfgang Schaeuble as a president of parliament.
Donald Trump has announced his tax plan. The plan suggests a reconstruction of the US tax code, which involves lowering the corporate tax rate from 35% to 20%, and 25% tax rate for small businesses. The plan has already caused big controversy and it is yet to be approved by the Congress.