Euro Surges To 3 Year High After German Parties Reach "Grand Coalition" Breakthrough

The euro jumped to its highest level in three years after German negotiators reached a preliminary accord on a coalition. The report sent EURUSD surging over 100 pips, breaking above the resistance at Sept. 8 high of 1.2092 to jump as much as 0.7 percent to 1.2136, the highest since Dec. 2014.



As Germany's DPA first reported, Angela Merkel’s conservative bloc and left-of-centre rivals the Social Democrats have achieved a breakthrough in their exploratory talks on forming a new “grand coalition”, potentially bringing an end to the political deadlock that has gripped Germany since inconclusive elections in September.

The German press reported that the breakthrough came in marathon talks between Merkel, chancellor and leader of the CDU, Horst Seehofer; leader of the CDU’s Bavarian sister party; and the Social Democrats, led by Martin Schulz, on Friday morning. The three leaders will recommend to their parties that they now start official coalition talks.

Still, celebrations could be premature: any move to launch formal negotiations will first have to be endorsed by the SPD at a special party conference in Bonn on January 21. And a coalition agreement between the three parties will also be voted on by the SPD’s 400,000 members, many of whom are deeply reluctant to see the party team up with Ms Merkel’s bloc according to the FT.

Following the September 24 Bundestag elections, Germany has been paralysed, unable to form a government as both the conservatives and SPD parties fell to their worst result since 1949. Previously, Merkel previously tried to form an unprecedented three-way coalition with the liberal Free Democrats and environmental Greens, but those talks collapsed in November, sending the Euro tumbling.




TeethVillage88s philipat Fri, 01/12/2018 - 07:00 Permalink

I remember neighborhoods that weren't integrated where I wasn't welcome back in 2001.

WTF is the place like now?

2005 I saw migrant types playing in a city fountain. Back in 1980s you would never see either kids or women playing in a fountain.

And then the Bus Terminals... wow like all foreigners and you wonder how much business is illegal.

- Germany & Europe, home of the biggest black markets in centuries
- Yes, Democrats & Republicans want USA to expand it's black markets and illegal activities
- We bomb Syria and yet have Syrians and their young kids watch on TV in the USA

In reply to by philipat

The_merovingian philipat Fri, 01/12/2018 - 07:33 Permalink

Don’t underestimate the German propaganda machine. They’ve just passed a law to set up a ministry of truth on social media now. Goebbels would be proud.

I used to live there when they started welcoming “refugees” (most of them were young males from all over Africa). To witness how they were able to effectively silence any democratic debate on this was a truly chilling experience. I packed up my stuff and left the country.

In reply to by philipat

giovanni_f philipat Fri, 01/12/2018 - 08:50 Permalink

the globalists are the new death cult, divided up in factions like ISIS, Antifa, Liberals, the mainstream media, the Green party, a.o. It took me some time to decode the matrix but once you get it the pattern becomes very clear. They are cogenital with the Nazis, the Trotzkyists, the Chinese cultural revolutionaries. You easily recognize them by their vitriol-soaked, paradoxical newspeak-like language, where, e.g., tolerance is what they say is tolerance, their black lists which they maintain and work off with missionary fanatism and their absolute, unmitigated hatred against anybody with a free mind.

In reply to by philipat

overmedicatedu… Arnold Fri, 01/12/2018 - 07:06 Permalink

germany your pc leaders are killing your culture to: shit hole status--Trumpism is what you need..badly


after reading the anti Trump posters on the shit hole thread:..let us just say as a deplorable ..delight and pride in the President who makes them foam at the mouth and light their hair on fire..delicious ..the laughs we are getting at their PC mind set..priceless. 


In reply to by Arnold

new game Fri, 01/12/2018 - 06:23 Permalink

dolla buying power dimishing. interesting! moar dollas to go to euro, not...

and i understand if euro want mericans to stay the fuk away...

dolla fade, lol.

expecting something different? lol...

MILLION DOLLLA… Fri, 01/12/2018 - 06:52 Permalink

merkel -mutti dolschtoss,is a busted flush even if this coalition takes power;her immigration policies have turned too many germans against her;her days as multi-culti fuhrer are numbered.

Joe A Fri, 01/12/2018 - 07:15 Permalink

I didn't expect it but apparently the parties are very eager to avoid new elections. Even if the coalition does happen, it'll mean that Merkel had to do concessions to both the SPD and the CSU. That means her position is weakened.

ukipboy Fri, 01/12/2018 - 07:33 Permalink

Horst Seehofer is a lame-duck leader. The Bavarian Christian Social Union party (CSU), which is sister party to Christian Democratic Union of Angela Merkel, has already voted unanimously to get rid of Seehofer. His arch-rival, Markus Soder, is taking over the party before the Bavarian state elections this year. Soder is an immigration hard-liner and he knows that to hold off the AfD in the elections, he needs to appear tough on immigration. Recently Victor Orban, Hungarian Prime Minister, addressed the CSU conference and the big theme was opposition to illegal migration.

halcyon Fri, 01/12/2018 - 07:57 Permalink

That's a rally that is not going to last. Then again, USD... it's barely hanging in there and only due to eurodollar squeeze and the fact that recycling still goes on to USG due to depth/liquidity issues.


caesium Fri, 01/12/2018 - 11:20 Permalink

Germany is an occupied country and has been since it was bombed to bits by team UK/USA starting from 1939. German politicians figure if we let in enough blacks the American won't try to exterminate us again. I wouldn't be so sure. Any country which runs a budget surplus with America is at risk and Germany's is big. People here complain about Germany but America created it and wrote its constitution.

dunce Sat, 01/13/2018 - 00:48 Permalink

Afd has hindered themselves by not rejecting Jewish hatred and effectively aligning themselves with Nazism. muslims are the real and only threat to their country because of socialist policies.