Welp, that certainly didn’t take long. The German election result provided a glimmer of hope for a turnaround in the German economy. But after an early boost, it looks like traders are still reserving some caution. There’s still a lot that needs to be done for the coalition to work. So, I guess therein lies the risk of the possibility of going back to the drawing board.
EUR/USD is now up just 0.2% to 1.0475, down from around 1.0515 at the start of the session. Meanwhile, the DAX kick started the day around 1% higher but briefly erased all of its gains – now seen up just 0.2%.
It’s still early in the day and there is much to digest from the post-election flows. But if anything else, another failed break of 1.0500 is a not a good look for EUR/USD buyers.
EUR/USD daily chart