The Euro has taken a hit in today’s trading session on the back of shock election results from the Eurozone that adds to the already existing political instability.
At 11.20am (GMT) the European currency was trading at $1.1859, down from $1.1961 in yesterday’s trading session.
Although German Chancellor Angela Merkel is expected to form a coalition and remain in government, it was the rise of the far right party that caught everybody off guard when the far right AFD party picked up 13.5 percent of the vote making it the first time such a party has entered German politics since 1949.
It follows on from a number of other European countries who have suffered the same fate which many blame on the flood of refugees entering Europe leaving the Eurozone barely coping,
"Merkel’s diminished authority and the rise of a party with links, and similar Eurosceptic views among other things, to UKIP and France’s National Front appears to be weighing on both the euro and the region’s indices," wrote Connor Campbell, an analyst at SpreadEx.
The Euro is likely to stay under pressure until Friday when retail sales figures from Germany hit the market along with CPI figures from the Eurozone.
If the CPI figures come in strongly investors may be willing to overlook the German election results and the Euro may continue its winning streak.
Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|