The euro opened higher on the forex at the beginning of the week, after the German Social Democrats (SPD) led by Martin Schulz voted Sunday for coalition talks with Chancellor Merkel, which makes it likely that Merkel will soon be able to start a fourth term.
USD / USD currency pair opened at $ 1,2273, closed at around $ 1.2210 after Friday. Last week, with a price of $ 1,2326, the euro reached its highest level against the dollar since December 2014.
The euro has been on the rise for several months against the greenback, which can be partly explained by the weakness of the dollar – which is seen as less attractive in times of a recovering global economy – and partly because the European economy In recent months, more and more steam is coming and the political problems seem to be over and done.
plus500 act in crypto coins
If Merkel succeeds in forming a coalition with SPD, then that is good news for Europe. Merkel and Schulz are both pro-Europe, just like French President Emmanuel Macron. The expectation is that the Franco-German axis will be revived and will be fully deployed on Europe.
Effect of Shutdown American government
Meanwhile, on the other side of the ocean, there has been more political turbulence since President Trump’s arrival, and this weekend went a step further after the US Congress could not agree on a measure to protect future government spending. cover.
As a result, the American government has been ‘locked up’ since Friday night midnight, or ‘shutdown’.
The direct consequences for the US economy of the shutdown are relatively small and as long as it looks as if Congress will succeed in closing a deal in the short term, the effect on the markets will probably also remain relatively small.
However, if the shutdown continues for weeks, markets will become more restless at some point, as a result of which stock exchanges and also the dollar could come under more pressure.
For the moment, however, investors will mainly take a wait and see attitude and see which direction this new crisis in Washington is going.
The price of the bitcoin gradually recovered to around $ 13,000 during the weekend, but could not hold that level for the time being. On Sunday around $ 11,200 a soil was found, after which the best known cryptocurrency went up to around $ 11,800.
Last Wednesday the bitcoin tapped the $ 9,199, the lowest level in 8 weeks, but the crypto coin then recovered quickly from that level.
Other cryptocurrencies, such as ethereum, ripple, bitcoin cash and litecoin stabilized in recent days. Crypto traders will undoubtedly keep a close eye on the prices in the coming days so as not to miss any boat up or a new fall down.