Euro and Kiwi slide on political uncertainties

On Monday, the common currency lost after German Chancellor Angela Merkel managed to win a fourth term, although stumbled on a fractured parliament as support for the far-right grew. Meanwhile, Asian equities pulled back, suppressed by worries as for China's economy.

Besides this, the New Zealand dollar took a hit too because the ruling National Party won the largest number votes, while unable to secure a ruling majority, with a prolonged period of coalition building a possibility.

Spreadbetters expected EU equities to start moderately lower, predicting Britain's FTSE to start down 0.1%, Germany's DAX to start a bit changed as well as France's CAC to demonstrate a 0.2 tumble from the very beginning.

The common currency went down 0.2% reaching $1.1933, thus putting more distance between a 2-1/2-year maximum of $1.2092 hit on September 8, when a ECB policy gathering left currency bulls optimistic enough that the ECB would get down to tapering its huge stimulus program.

MSCI's index of Asia-Pacific equities handed back earlier moderate revenues. Last it tumbled 0.6%.

The world 11th most-traded currency, the New Zealand dollar lost 1% hitting $0.7264, showing its greatest intraday percentage dive since May.

Similar

22.07.2021 17:30 How Will USD React to US Consumer Confidence?

What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…

04.07.2021 17:02 Currencies, stocks, commodities: trade ideas for July 5-9

The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.