Germany heads to elections this weekend. While the event itself will not be a game-changer, a growth-friendly mix of the SPD/Greens would likely reinforce that the euro has started to carve out a bottom, strategists at TD Securities report.
German election not a game-changer
“German elections might alter the temperature in the room but won’t fundamentally correct all the ills of the European project.”
“What’s essential for the near-term outlook is that our growth factors, and related signals, have started to turn in favor of EUR.”
“Barring a centre-left polling surprise (where the Greens and SPD both outperform expectations), we don’t think EUR will trade the election results aggressively.”