Euro's Hot Streak Could Stall Should German Coalition Talks Fail
- May drop as low as $1.17 if SPD says ‘no’, Morgan Stanley says
- Toronto-Dominion sees any drop as most pronounced versus yen
Bruegel Sees `Deep-Rooted Suspicion' About German Coalition
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The euro’s bull run may face a hiccup should Germany’s leaders fail to break a four-month political impasse that has left Europe’s largest economy without a majority government.
The common currency could fall as low as $1.17, a level not touched since mid-November, should the Social Democratic Party decide not to pursue a coalition with Chancellor Angela Merkel, according to Morgan Stanley. The SPD is holding a special convention on Sunday to decide whether to pursue formal talks with Merkel’s Christian Democratic Union-led bloc.