Political leaders in Germany have reached a breakthrough in talks to form a new coalition government, following months of uncertainty after elections in September failed to produce an overall majority for any party.Germany’s Chancellor Angela Merkel entered into talks with a rival party earlier this week in a last-ditch effort to form a government. This after a political deadlock in the euro zone’s largest economy that had shed some doubt on the future of Merkel’s leadership.After 24 hours of grueling discussions — that reportedly ran all through the night — a new blueprint for more formal coalition talks was presented to party members on Friday morning. At best, a government will still not be sworn in by late March or early April, according to some experts. Nonetheless, the euro surged higher Friday morning on the news and German bond yields hit fresh five-month highs.
Source: German lawmakers reach breakthrough in talks to form a new government
Euro at Three Year High on Possible Coalition Deal
EUR/USD – Euro Soars to 3-Year High as German Coalition Talks Show Progress
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- OANDA Market Insights podcast (episode 52) - 02/15/2019
- Overreaction to US retail sales? - 02/15/2019
- Investors shrug off May’s “humiliating” defeat - 02/15/2019