Single Currency Stabilized, Stocks Keep Tumbling
The single currency has slightly recovered after yesterday’s drop. EUR/USD lifted 0.16% to close at 1.2266. French Industrial Production rose to 0.5%. Italian Industrial Production surged to the year and a half- maximum of 1.6%. Today’s highlight are US Final Wholesale Inventories.
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.
Shares have once again weakened. This whole week they have been under a serious selling pressure. The greenback seemed to have benefited from the volatility, trading as the second strongest currency. Some analysts say that declines in stocks might be caused by possible policy changes, particularly Fed rate hikes.