Euro Falls as Merkel Faces German Coalition Test After Win
- Drop may be start of meaningful correction: Credit Agricole
- Swiss franc may benefit after coalition change: UBS Wealth
Euro Falls as Merkel Faces Coalition Test After Win
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The euro dropped as Angela Merkel’s victory as German Chancellor was marred by a worse-than-expected result that leaves her facing tough coalition talks.
The common currency snapped a two-day rally as her current coalition partner, the Social Democratic Party, ruled itself out of a deal with Merkel’s Christian Democratic Union, making the formation of a government more challenging. Instead, she will have to negotiate with the pro-business Free Democrat Party and the Green Party, something that could take months.