Latest headlines suggest new German elections are likely

The latest comments from Angela Merkel make it probable that we’re heading to new elections. Merkel says;

  • She’s not planning a minority government
  • New elections are better than a minority government
  • Is open to another grand coalition
  • Is ready to carry on as German Chancellor

There’s been a lot of chest beating today from all the parties, so that could force one last shot at negotiations. What’s largely unknown is whether German voters will change from the marginal to the main parties, to bring about a stable government.

The euro largely ignored the political events until the poop hit the fan as talks broke down. There’s going to be much more focus on it now. EURUSD has slipped all the way back down to the 1.1730 lows as the news weighs.


Ryan Littlestone

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