The euro has weakened slightly this morning against the euro and the dollar as the markets await the final outcome of the German election.
According to the preliminary results, Germany’s centre-left Social Democrats have narrowly beaten the party of outgoing Chancellor Angela Merkel. The Greens have secured their best result in a national poll, with early results putting them in third place. Meanwhile, Angela Merkel’s party, sank to a historic low, with only 24.1% of the vote.
The narrow win means that a coalition now needs to be formed and talks will now take place, which could take months. It’s thought that a three-party coalition is the most likely outcome.
It’s a fairly busy week for economic data releases in Europe this week, with sentiment figures due on Wednesday, unemployment data on Thursday and flash inflation rate on Friday.
