Euro Stays Steady as German Politic Situation Improved

Market Reviews

There is no clear new direction in the currency markets today. The US dollar weakened after a brief recovery. The euro remains stable. The Swiss franc remains the weakest major currency. Markets are expecting data on inflation from the US, Eurozone and Japan. In addition, the development of negotiations on the coalition in Germany, as well as negotiations on Brexit will also be the main events this week.

The SPD agreed to discuss with the CDU/CSU the question of the possibility of forming a government. Leader of the Christian Social Union Horst Lorenz Seehofer also said that an alliance of the conservatives and the SPD is the best option for Germany - better anyway than a coalition with the Free Democrats and the Greens, new elections or a minority government.

The UK Prime Minister Teresa now has only a week to come up with an improved offer for Brexit talks. The EU officials will check progress to ensure that sufficient advance has been made to move on to discussing a possible trade agreement.