Single Currency Recovers, FOMC Minutes Awaited

The single currency has improved as Euro/Dollar pair lifted 0.26% to trade at 1.1770. Today, Eurozone will publish Consumer Confidence and the US will announce Core Durable Goods, jobless claims, UoM Consumer Sentiment and FOMC November meeting protocol. US Building Permits for single-family homes rose to 1.30M. In annual terms, the pace of building permits growth in October reached the ten-year maximum. Housing Starts grew to 1.29M. US Existing Home Sales which hit the maximum of four months. Tomorrow, Germany and the Eurozone will show manufacturing PMIs, and Germany will feature final Gross Domestic Product. The European Central Bank will release the summary from the October meeting.

Angela Merkel didn’t manage to create a coalition with Free Democratic Party and Greens. The Chancellor is about to negotiate with leaders and figure it out, but so far, Germany will remain in the standby mode. Frank-Walter Steinmeier claimed that so far there is no need in arranging new election and that leaders of parties should take some time and mull the whole situation. But, if there is no progress negotiations, they would be forced to call the election. The appreciation of Angela Merkel has strongly sunk. It seems that the majority would prefer new election and not many people think that Angela Merkel will become a Chancellor again.