Market Overview

Eurozone Politics Coming Into Focus

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The euro held on to gains against the dollar on Thursday morning after a string of positive data this week and last helped boost morale in the 17 nation bloc. The common currency traded at $1.3301 at 7:29 GMT on Thursday morning.

As the threat of military action in Syria eased, investors returned to the euro. The White House has confirmed that the president is working together with the UK and France to ensure the Syrian government is held to its commitment to turn over its chemical weapons to international regulators.

Although the non-violent resolution in Syria boosted the euro, the common currency is still weighed down by political uncertainty in two of its member nations.

Related: Benzinga Market Primer for September 12: Kerry and Lavrov Discuss The Terms Of Syria Resolution At Two Day Meeting

German general elections, scheduled for September 22nd, have been watched closely as current Chancellor Angela Merkel and her coalition government attempt to serve another term. After a tumultuous campaign trail, Merkel's center right coalition has a narrow lead in the polls.

The Wall Street Journal reported that Merkel lost ground this week with only 52 percent of Germans supporting her, compared to last week when 55 percent backed her. However, she remains twice as popular as her opponent, Peer Steinbrueck who gained three percentage points to 26 percent.

In Italy, the senate committed tasked with deciding whether or not Silvio Berlusconi, who has been convicted of tax fraud, will be expelled from the Italian parliament has postponed their verdict. Berlusconi has threatened to take down the Italian government if he is not allowed to serve out the rest of his term. Many are worried that the ongoing political turmoil could stand in the way of the country's forward progress.

Posted-In: Angela MerkelNews Eurozone Commodities Forex Global Federal Reserve Markets Best of Benzinga

 

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