At least to fight another day and the final round of negotiations to form a collation government with the Social Democrats (SPD). Not a done deal just yet.
The euro/$ is quite muted and coming off tonight’s opening high. Let’s see what happens tomorrow.
If there is no follow through-buying, decent dollar short covering could ensue.
Conversely, if euro buyers come in, the Dixie could push through last Thursday’s intraday low of 90.113, and we may see an 80 handle for the first time since December 2014 – on the way to the 87 measured move we posted last week.
Rising interest rates and a weaker dollar is a red flag in our book. That is an early signal of potential capital flight. Keep it on your radar