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Forex- German Political Uncertainty Taints Euro

The euro was down amid political uncertainty. - The euro continued to fall amid political uncertainty on Monday while sterling gained ground against the U.S. dollar.

Germany failed to create a coalition government between its three parties, on Monday, which could lead to a call for new elections. EUR/USD fell 0.46% to 1.1737 as of 11:45 AM ET (4:45 PM GMT) amid the news.

German President Frank-Walter Steinmeier said the country faces an unprecedented situation following and urged political parties to reconsider forming a coalition in order to avoid new elections.

Sterling inched forward amid reports that Britain would submit a Brexit divorce bill before the end of December. GBP/USD rose 0.23% to 1.3245 while EUR/GBP fell 0.63% to 0.8863.

Meanwhile, the U.S. dollar strengthened but was held back by doubts over the tax reform bill.

Last week the House voted to pass a tax bill that would lower corporate taxes and cut individual taxes for most households in 2018, in a step towards the biggest U.S. tax code overhaul since the 1980s.

Senate lawmakers are expected to vote on their version of the bill after this week’s Thanksgiving holiday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.32% to 93.91. The dollar was also up against the Japanese yen, with USD/JPY increasing 0.34% to 112.47

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