Euro Soars to One-Month High After German Election

 

Euro Soars to One-Month High After German Election

The euro surged to a one-month high against the US dollar on Monday, following the expected victory of conservatives in Germany's national election.

As of 11:05 Moscow time, the euro rose 0.19% to $1.0478, earlier reaching $1.0528, its highest level since January 27.

Germany's DAX index also climbed 0.67% to 22,436.51 points, while the UK's FTSE 100 index edged up 0.05% to 8,663.29 points.

In contrast, France's CAC 40 index fell 0.63% to 8,102.94 points, according to Bloomberg data.

Analysts noted that the focus is now on how quickly the Christian Democratic Union (CDU) can form a coalition government to implement the much-needed changes in the weak economy.

"Theoretically, more market-friendly coalitions are still possible, including a grand coalition and a 'Kenya' coalition with the CDU, SPD, and Greens," said Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management.

Analysts pointed out that the Alternative for Germany (AfD) party, which opposes fiscal reform, did not perform better than expected, supporting expectations.

According to preliminary results of the German parliamentary election held on Sunday, the conservatives led by Friedrich Merz won against the right-wing Alternative for Germany party, in line with most market expectations.

: Euro, German election, conservatives, coalition government, economic reforms.