Political instability in Germany is assuming increasingly threatening forms, as the current Chancellor Angela Merkel was forced to agree on early elections, rather than form a government in the minority.
Distrust of Merkel began to grow rapidly after the decision to open borders for more than 1 million migrants. In the September elections, a high percentage of approval was given to the far right, which made it more difficult for the chancellor to retain power. Investors hastened to reduce their positions on European shares, while the euro fell to an eight-day low against the pound sterling, as the growing political crisis in Germany crossed expectations of advance of european assets. Unpredictability will continue to be a matter of concern for investors, given Germany's critical role in the European Union.
The oil market is preparing for OPEC meeting next week, where the largest oil producers are expected to make a decision to extend production cap as opposed to growing oil supplies from the US. The agency Westwood Global Energy predicts that growth in US crud output may exceed the pace calculated on the basis of the number of oil rigs, the number of which increased from 316 from mid-2016 to 738 last week.
Members of the Board of the Bank of England expressed their differences on Tuesday about the recent increase in the Central Bank interest rate for the first time in a decade. The subject of the debate was the study of the relationship between low unemployment and the rate of inflation. A strong labor market, including wage growth, made it possible to tighten policies, but now the Central Bank is in for a long period of dovish stance, especially in the light of the difficulties of getting out of the EU. GBPUSD has barely grown to the level of 1.3250, while against the euro the pound grew much stronger, which indicates a change in sentiment on the European currency to bearish.
Chicago futures exchange CME reported on Monday that the company plans to launch bitcoin futures, but the exact date of the event - December 11, is listed on the site by mistake. BTCUSD sank to the level of 7.800, but quickly recovered to 8.230 on Tuesday.
Arthur Idiatulin
Distrust of Merkel began to grow rapidly after the decision to open borders for more than 1 million migrants. In the September elections, a high percentage of approval was given to the far right, which made it more difficult for the chancellor to retain power. Investors hastened to reduce their positions on European shares, while the euro fell to an eight-day low against the pound sterling, as the growing political crisis in Germany crossed expectations of advance of european assets. Unpredictability will continue to be a matter of concern for investors, given Germany's critical role in the European Union.
The oil market is preparing for OPEC meeting next week, where the largest oil producers are expected to make a decision to extend production cap as opposed to growing oil supplies from the US. The agency Westwood Global Energy predicts that growth in US crud output may exceed the pace calculated on the basis of the number of oil rigs, the number of which increased from 316 from mid-2016 to 738 last week.
Members of the Board of the Bank of England expressed their differences on Tuesday about the recent increase in the Central Bank interest rate for the first time in a decade. The subject of the debate was the study of the relationship between low unemployment and the rate of inflation. A strong labor market, including wage growth, made it possible to tighten policies, but now the Central Bank is in for a long period of dovish stance, especially in the light of the difficulties of getting out of the EU. GBPUSD has barely grown to the level of 1.3250, while against the euro the pound grew much stronger, which indicates a change in sentiment on the European currency to bearish.
Chicago futures exchange CME reported on Monday that the company plans to launch bitcoin futures, but the exact date of the event - December 11, is listed on the site by mistake. BTCUSD sank to the level of 7.800, but quickly recovered to 8.230 on Tuesday.
Arthur Idiatulin
This analysis is provided as general market commentary and does not constitute investment advice. Past performance is not indicative of future results
