Single Currency Hits Minimum, Grand Coalition For Germany

Forex News

The single currency keeps falling. EUR/USD dropped 0.29% to trade at 1.2228. German trade surplus reduced to 21.4B euros. Today, the US will release jobless claims. Tomorrow, France will feature Industrial Production. Angela Merkel officially declared the reformation of grand coalition after conclusion of the negotiation with Social-Democratic Party. The Chancellor claimed they will create "the good and stable government that our country needs and that many in the world expect from us". SPD leader Martin Schulz will leave his leading position and become Foreign Minister of Germany.

Meanwhile, shares still haven’t recovered from earlier declines. This whole week they have been under a serious selling pressure. DOW fell -1175.21 pts (-4.6%) at 24345.75. Some analysts say such a volatility might be caused by possible policy changes, particularly Fed rate hike.