EURUSD drops after German elections

The euro declined notably on Monday, pushing the EURUSD pair below the 1.17 threshold, looking ready to rest August lows near 1.1680.

Sunday’s German elections brought a little surprise as the center-left Social Democratic Party won with 26% of the votes, according to the preliminary results, two percentage points ahead of the center-right Christian Democratic bloc. As such, the party of the retiring Angela Merkel will likely go into opposition for the first time in 16 years.

Later in the day, ECB President Christine Lagarde will testify before the Committee on Economic and Monetary Affairs. Her speech might influence the EURUSD pair.

Additionally, the Federal Reserve Bank of New York President John Williams speaks about the economic outlook at a webinar hosted by the Economic Club of New York. 

Lastly, the BOE Governor Andrew Bailey will speak at the Society of Professional Economists Annual Dinner in London. 

Investors will focus on the US durable goods orders from the macro data, which are expected to improve month-on-month. Slightly better than expected numbers could help the EURUSD pair to create new lows during the US session.

Elsewhere, precious metals erased their overnight rally, and the same can be said about US equity futures. However, EU bourses were trading notably higher during the EU session.

Source: https://www.axiory.com/market-news/eurusd-drops-after-german-elections