Official confirmation by Germany's SPD party, acting head Olaf Scholz with the presser
- Says that members approved coalition pact with Merkel's CDU/CSU with a vote of 66.02%
- 78.3% of SPD members participated in the vote
- Has informed Merkel and president of the result
- Will work on putting a cabinet together this week
That settles the German part of the equation for the euro this weekend. And arguably the larger risk that could negatively impact the euro should the opposite outcome have come up.
Focus will now shift to the Italian elections, but unless there is a major shock or an extended period of uncertainty on who the ruling party/coalition will be, things are looking brighter for the euro as we look to kick off the week.
But do note that the market had largely discounted the negative outcome from the German elections heading into the weekend, though if there's one thing that we've learnt from the euro over the past few months it's that buyers are waiting to pounce on anything positive - even if it is expected.
