Yahoo Finance Market Snapshot – German Troubles Dominate Markets
Euro Whipsaws
The euro has been in the spotlight today as the failure of Merkel to form a coalition in Germany has had a tough effect on the euro so far. The euro fell early during the Asian session only to recover during the London session to reach the 1.18 region once again. It has turned bearish once again as of this writing and the price action continues to be choppy as the situation in Germany continues to be fluid with new elections also being a possibility in the short term. Merkel has reached out to other parties in a bid to form a coalition but her struggles are clear for everyone to see. With Germany being the bedrock of the Eurozone and Merkel being the undisputed leader of the Eurozone, her struggles are likely to have a large effect on the euro strength in the short term until the situation is sorted out.
Markets Under Pressure
The stock markets have been under pressure since morning on the news of the Germany political issues and this is likely to hold sway for the short term. The DAX has suffered the most since this morning, as has been widely expected and is likely to continue to be under pressure as Merkel seeks to find a way out of the mess. If push comes to shove, then she will need to call for elections and that will only prolong the pressure and uncertainty.
This article was originally posted on FX Empire
