 Euro opened the week slightly higher against all major currencies, as traders reacted positively to the German election results. Conservatives CDU/CSU secured victory, setting Friedrich Merz up as the next chancellor. However, Euro's gains remain limited, as uncertainty over coalition talks persists, with negotiations potentially dragging on until Easter. While Merz’s CDU/CSU emerged as the largest party, winning 28.5% of the vote, it was far from a decisive mandate, leaving him in a weakened position for coalition negotiations. The far-right AfD secured second place, marking its best-ever result. However, Merz has ruled out coalition talks with AfD, meaning a broader, more traditional coalition will be needed. It remains unclear whether Merz will require one or two partners to form a government. Given the complexity of the negotiations, analysts expect haggling could last until Easter, prolonging political uncertainty in Europe's largest economy.... |
