Eurozone: Its all about politics - TDS

Analysts at TDS point out that there was a lot of political headlines over the weekend in the Eurozone during early doors for Asian trading as in Germany, SPD party members voted 2/3 in favour of joining the coalition with Merkel's CDU/CSU, a larger share than expected.

Key Quotes

“So, six months after the election, Germany is in the final stages of assembling a government. The more controversial event was the Italian elections yesterday, with exit polls suggesting a hung parliament via no clear majority. The exit poll by Rai state television showed the Five Star Movement would be the largest single party, but a center-right bloc — including Berlusconi's Forza Italia — would gain the most seats. Unlike Germany's months, however, horsetrading is more likely to last 1-2 weeks to form the next government. EUR initially sagged to 1.23 early doors but stuck at 1.2323 thereafter. Pair will be guided by such Italian political headlines in the near-term, with initial support/resistance around 1.2300/1.2365.”