Euro Slightly Higher Versus US Dollar
The euro starts the week with a slight increase. The euro/ dollar pair increased by 0.12%, and is trading at 1.2266 level. Last week, the euro experienced the worst week since November 2016. The US dollar fell, as the rebound in the stock markets ended with a strong blow to the US currency.
The growth of the world economy strengthened exports and the production sector of the Eurozone. This was highlighted by strong production reports from France and Italy in December, which were released on Friday. Industrial production in both countries has improved compared to November, ahead of estimates. Industrial production in Italy grew by 1.6% and showed the strongest growth since August 2016.
Parliamentary elections in Germany took place on September 24, 2017, and the first attempt by Angela Merkel to form a coalition ended in failure. And only on February 7, 2018 negotiations on the formation of the government were concluded. The Christian Democratic Union (CDU) and the Christian Social Union (CSU), acting as a single bloc, as well as the Social Democratic Party of Germany, agreed a coalition agreement. Angela Merkel will have to adjust her policy somewhat, given the mood of the coalition partners. The US will publish data on federal budget. It is expected a large surplus of $50.2 billion. This would mark the first surplus since September. Germany will publish Preliminary GDP and Final CPI, and the Eurozone releases Flash GDP on Wednesday.