Elections affect currencies and stock markets

Merkel won a fourth term in Germany on Sunday but will have to build an uneasy coalition to form a government after the Alternative for Germany (AfD) party was expected indicated 13.5% of the vote. Despite winning the most votes, Merkel's bloc slumped to its worst result since 1949. Probably the most significant announcement following the election was that Social Democrat coalition partners said they would go into opposition.
As the result, euro slipped 0.3% in early Asian trading on Monday but it was stabilizing. I think euro may increase from the open price today by the good forecast of business climate in Germany at 15.00 and ECB president speaks at 20.00 GMT+7. Moreover, major Asian indexes were mixed today: China -0.40%, Hong Kong -1.14%, Singapore -0.16%, Nikkei +0.49% and Thailand +0.35% as investors digested elections in Germany and New Zealand.
Elsewhere, the Kiwi dollar was pressured as the New Zealand election saw Prime Minister Bill win the most votes but small parties has over half seats. Japanese politics were also in the spotlight with Prime Minister Shinzo Abe expected to declare that Japan would have a snap election in October. The yen was softer against the U.S. dollar. In my opinion, U.S. dollar may rise against major currencies and gold may fall. However, I suggest to keep eyes on tension between North Korea and USA this week.

Olymp Trade Review