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German elections: Unholy alliance as best case scenario - Natixis

Sylvain Broyer, Research Analyst at Natixis suggest that the grand coalition is the major casualty of German general election 2017, with the CDU/CSU and SPD jointly losing 13.8% of votes (compared to the 2013 election) to the benefits of small parties.

Key Quotes

“The first presence of a right-populist party at the Bundestag will largely divert the democratic discussion from reforming the country.  The only possible coalition – with four very different parties likely to rule Germany – means unchartered political territory.”

“A lot of compromises will be needed for a “Jamaica”coalition to succeed, especially Europe and Energy will be two highly disputed policy areas.  Shouldn’t this coalition survive, Angela Merkel could fail to match Helmut Kohl’s record of 16 years in office.”

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The greenback continued gaining traction against its Canadian counterpart, lifting the USD/CAD pair to 1.2400 mark for the first time in three-weeks.
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NZD/USD tests 0.72 handle as DXY pushes higher toward 93

The NZD/USD pair remains offered on Tuesday as the greenback continues to gather strength against its peers. As of writing, the pair was trading at 0.
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