EURUSD is trading at 2-month highs after reaching out for 1.1944 levels throughout last Friday’s session. Like political uncertainity caused a euro decline last week, simlarly political optimism in Germany helped the euro recover handsomely.
An anouncement of failed coalition talks between Merkel’s conservative party, the greens and the FDP party seems to have been offset by optimism on a coalition involving the Social Democrats and Merkel’s conservative party.
The German political mood was not the only factor helping the euro. Friday’s German IFO indicators for the month of November delivered some better than expected results with both the indices for Business climate and Expectations surpassing expectations.
So far EURUSD is little changed this morning with the currency pair standing right were it started up to the time of writing.
The US Dollar index measuring the strength of the USD against a basket of currencies closed a 3rd consecutive week in decline. Up till now losses for the USD have somewhat subsided but it is still lying virtually where it closed last Friday. US Dollar index (DXY) is currently at 92.79.
In terms of economic data the day is relatively quiet today apart from having the US New Home sales for October and the Dallas Fed Manufacturing Activity for November.
