Euro Strengthens as Merkel closes in on coalition
- USD - PPI m/m
- GBP - BOE Credit Conditions Survey
- JPY - Bank Lending y/y
The Euro boosted early this morning, as it was announced German Chancellor, Angela Merkel and the Social Democratic party have come to an agreement, after all night talks, which will allow their coalition talks to move onto the next stage. The blueprint, which will be used for the next round of talks, shows both parties commitments to help strengthen the Eurozone as well as not issuing a new tax hike. This is just the start of coalition discussions as the SPD leaders now need to gain the backing of their members to progress further.
- USD - CPI m/m
- EUR - German Buba President Weidmann Speaks
- EUR - Italian Industrial Production m/m
Across the pond, the US core CPI figure grew further than expected, posting 0.3% up from 0.1% in the previous month. This was the highest reading for 11 months, with new and used vehicles contributing to the increase. Clothing, airlines fares and tobacco all declined in December. Inflation for the year remains at 2.1%, supporting the Fed’s forecasts of three further rates hikes this year. The Greenback bounced back slightly, but the strong Euro kept the Dollar down.