German “GroKo” in the balance

Groko - German coalition | Econ Alerts

Daily Analysis | 17 January 2018   The Berlin fraction of SPD voted against the deal for a new grand coalition (GroKo) partnership between the SPD, CDU, and CSU to form a new German government, ahead of the Party’s conference on Sunday. Despite the fact that the Berlin fraction has only 23 delegates in the […]

Euro recovers amid hopes of a German coalition

bitcoin-btc-2016 | Econ Alerts

Daily Analysis | 27 November 2017   The euro surged on Friday after the leader of Germany’s SPD party signaled that he is open to the possibility of another “grand coalition” with Merkel’s CDU. The SPD is Germany’s second largest party, led by Martin Shultz. This news likely came as a surprise to many market […]

EUR/USD trades like a rollercoaster on German politics

EURUSD | Econ Alerts

Daily Analysis | 21 November 2017   EUR/USD traded in a very volatile manner yesterday, amid a plethora of political updates from Germany. The world’s most traded currency pair rebounded notably during the European morning Monday, following reports that Chancellor Merkel was going to meet with German President Steinmeier, possibly on speculation that she was […]

Euro drifts lower as German coalition talks collapse

Euro | Econ Alerts

Daily Analysis | 20 November 2017   The euro edged lower during the Asian morning Monday, following some political updates over the weekend from Germany. Talks on forming a coalition government collapsed after the liberal FDP walked away from the negotiations that began towards the end of September. This development likely heightened political uncertainty in […]

Merkel wins, but EU reforms appear less likely

Daily analysis | 25 September 2017   Will traders be worried about the German Elections?   In Germany, Angela Merkel won a fourth term as Chancellor. However, her party (CDU) did worse than most opinion polls suggested. The pro-EU SPD, Germany’s second largest party, also gained fewer seats than anticipated. Critically, the SPD ruled out another […]

Weekly Market Outlook: September 25th – 29th

Weekly Market Outlook | Econ Alerts

Elections in Germany & New Zealand, RBNZ meeting, key data in focus   Next week’s market movers   • In Germany, voters will elect their new Chancellor. On the vote, we see the case for a relief bounce in European assets if Merkel is the winner as anticipated, though any major reaction may only occur […]

How will the German Elections affect the markets?

Martin Schulz and Angela Merkel | Econ Alerts

Main points regarding the German Elections on 24th September 2017:   • On the 24th of September, German citizens will elect their new Parliament and consequently, their new Chancellor. • Incumbent Chancellor Merkel is almost certain to retain her post, according to almost every poll. • However, she will probably need to strike a coalition […]

German election: Little risk, but Europe’s reforms hang in the balance

Daily analysis | 22 September 2017   German elections: how will it affect the markets   On Sunday, German citizens will head to the polls to elect their new Chancellor. Unlike the bloc’s recent elections, this battle appears to be more traditional in nature, as the two main parties hold very similar views on key […]