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Market Snapshot – DAX and Germany Get a Boost On News of Deal

Colin First
The markets are jittery and nervous as gold and the euro are near support regions

Euro and DAX Higher

The euro and the DAX received a boost today as the German leader Merkel has managed to thrash out a deal with another party which would help her to form a coalition, several months after the last election was complete. The week began with the news that she was opening talks with the old party in the hope of thrashing out a deal, and it was seen as the last chance for her to string together a coalition, failing which she would have been forced to call for new elections and facing the prospect of an even more fractured verdict. But with this deal, she can hope to continue her rule till the end of her term and this should ensure continuity in her policies and economic strength for Germany.

Cryptos Get a Boost

The crypto market also got a boost today as the finance minister in South Korea chose to go soft on the bitcoin exchanges in their country for now. The Justice Minister had signalled a closure of the exchanges on the day before which led to a sell off in the cryptocurrencies but with this assurance from the finance minister that several departments would have to look into the feasibility of such a ban and bringing into law of such a ban could take months or even years, the crypto industry got a boost for the medium term atleast but the impact of this statement on the prices has been muted so far.

This article was originally posted on FX Empire