German Chancellor Angela Merkel may hold new elections after failing to reach an agreement on forming a coalition government with the FDP and the Greens (the so-called Jamaican Coalition). The political crisis in Germany continued to affect the movements of the euro for a second day in a row, the political uncertainty sent EURUSD to its lowest level since November 14 at 1.1713. Merkel prefers new elections to leading a minority government.
Markets are preparing to receive the minutes of the FOMC meeting on Wednesday and it is expected to come very hawkish as markets are pricing in rate hike for a third time before the end of this year when FED meets next month.Also, the Senate decision on the tax bill is eagerly awaited following the Thanksgiving holidays, especially after the House has already passed the bill.
The Reserve Bank of Australia Governor Philip Lowe said today that the decision to raise interest rates is the closest to the decision to reduce, stressing the weakness of the scenario of the reduction in light of the recovery of the Australian economy recently,and Lowe sees competition in the retail sector potentially curbing inflation at the moment.
Crude oil prices are currently stabilizing at $56 a barrel as investors look to the meeting of oil producers from OPEC and their partners in cut production agreement next week in Vienna, where most of the expectations are to extend production cuts again beyond March 2018.
