German & New Zealand Elections

25 September, 2017

The results of the German Election have re-elected Chancellor Angela Merkel for a fourth term. Her CDU party won fewer votes than was expected and Chancellor Merkel commented that “the CDU would have hoped for better result, but we mustn’t forget – looking back at an extraordinary challenge – that we nevertheless achieved our strategic objectives: we are the strongest party. We have mandate to form the new government and we will form the new government.” Chancellor Merkel will now be tasked with forming a coalition Government which is likely to take several months. Per the latest results the CDU won 32.5% of the vote compared to the 2013 election that saw them win 41.5%. The normally strong SPD’s 20% of the vote is a post war low for the party, whilst the right-wing nationalist AfD party, appears to have won 13.5% of the vote, making it the country’s third largest party. With the AfD securing third place this may cause concerns, as it may disrupt Merkel’s plans for further Eurozone integration.

In New Zealand, Prime Minister English’s National Party won the most votes in their General Election, although it was not sufficient to ensure a majority. The uncertainty of when a majority coalition will be formed has weighed on the Kiwi.

In Japan, Prime Minister Abe is expected to announce that the country will hold a snap election in October.

GBP was sold against USD and its major counterparts on Friday on news that the credit ratings agency, Moody’s, announced it had downgraded the United Kingdom’ long term issuer rating to AA2 from AA1 and changed the outlook to stable from negative. GBP had suffered earlier in the day as Prime Minister Theresa May had failed to give any substantive details on how the United Kingdom might retain preferential access to the Eurozone’s single market. Prime Minister May’s speech in Italy gave little detail and provided no new information as to the direction of the discussions, and outcomes, between the UK and Europe.

North Korea’s Foreign Minister, Ri Yong-ho, addressed the United Nations on Sunday, providing more rhetoric on the war of words between the US and North Korea. He told those assembled that “it was all the more inevitable” that the regime’s rockets would “visit” the US mainland. Ri also added that it was Trump, not Kim, who was on a “suicide mission”. He likened Trump to “the sound of a dog barking” and commented that he felt sorry for Trump’s aides when asked about the Presidents “rocket man” nickname for Kim. There has been the inevitable flight to safe havens, with JPY and Gold improving against USD. The markets are keenly watching for the next “round” of rhetoric which could lead to more risk-off sentiment in the coming days.

EURUSD is 0.25% higher in the early trading session; currently trading around 1.1925.

USDJPY moved higher overnight to currently trade around 112.25.

GBPUSD suffered with a credit downgrade and lack of information from Prime Minister May on Brexit solutions on Friday. GBPUSD traded as low as 1.3449 on Friday, before retracing higher over the weekend to currently trade around 1.3540.

Gold is down 0.35% in early Monday trading, currently trading around $1,294.

WTI traded in a relatively narrow range on Friday and is little changed overnight. Currently, WTI is trading around $50.60pb.

Major economic data releases for today:

At 09:00 BST, the CESifo Group will release German IFO-Business Climate sentiment index, Current Assessment & Expectations for September. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. A release above consensus will see EUR gain, with a lower than forecast release putting downward on pressure on EUR.


Source link  
Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...

Fed Monetary Policy Report to be released

This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...

The Pound continues to weaken

Cable (GBPUSD) took a hit yesterday as Boris Johnson resigned from the Cabinet following the earlier decision by David Davis to part ways...


The latest Brexit proposals

The UK's Brexit Secretary David Davis has resigned along with two junior ministers, Steve Baker and Suella Braverman, over PM May's latest softer Brexit proposals...

Some ECB members want earlier rate hike

The markets remain subdued after yesterday's 4th of July celebrations in the US. Despite this Oil headlines are dominating the markets once again. US President Trump...

Gold has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now hit the 1240.00...


Gold chart has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now reached...

President Xi warns of Full Scale Trade War

Risk on sentiment returned briefly yesterday as markets retraced some of Monday’s selloff but sentiment in Asia has declined overnight. The PBOC cut...

USD extend losses in risk adverse markets

Stock markets fell hard yesterday as trade tensions deepened and the consequences of such action has investors worried. US Company Harley Davidson...


In the past 24 hours Bitcoin has gained 0.82% and reached $7416.2. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.3727% and is now at $1.1646. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 6.7% and is now at $465.465. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group79%
5FxProFxPro78%
6FXCMFXCM73%
7AvaTradeAvaTrade69%
8HotForexHotForex68%
9XMXM68%
10Alfa-ForexAlfa-Forex66%
  


Share: