German trade union call reported by Reuters 30 Jan
The union have been threatening, and following through with, 24 hour strikes after regional labour talks failed to reach a suitable deal.
Is any of this putting a dent in the euro? Of course not but, hey, ours is not to reason why eh? Germany's on a roll. What's a few days of strikes going to hurt? The bigger picture ofc is a little different.
Anyhow, EURUSD up to daily highs of 1.2452 and EURGBP clawing its way back up to 0.8805 with EURJPY higher again at 135.12
Expect offers/res into 1.2480 with large contracts worth EUR 3.5bln expiring there tomorrow but remember there's always two sides to an option.
Re the industrial strikes head of IG Metall Joerg Hofmann said at the w-e:
"We have to step up the pressure on employers in the coming days so that they show some willingness to compromise,"
The union has said it sees no point in further talks during the planned walkouts, but said it was in principle willing to resume negotiations if employers showed a willingness to make concessions. If not, the union's leadership will prepare to ballot workers for extended strikes in Jan to support IG Metall's demands for higher pay and the right to shortened working hours, but employers have warned that 24-hour strikes could pose a serious risk to companies.
