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In the afternoon, the common currency cost 1.1706 US dollars, a little less than in the morning. The European Central Bank (ECB) set the reference rate at 1.1698 (Friday: 1.1719) dollars. The dollar cost 0.8548 (0.8533) euros.
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The result of the federal election did not initially have a major impact on the foreign exchange market. Although the SPD won the election just before the Union, both top candidates claim the mandate to form a government for themselves. Both Olaf Scholz (SPD) and Armin Laschet (CDU) are striving for a coalition with the Greens and the FDP. In view of the poor election results, a government involving the left is off the table.
“After the general election, many investors and entrepreneurs will be relieved that a red-green-red alliance failed to achieve a majority,” commented Jrg Krmer, chief economist at Commerzbank. But a market economy reform program is also unlikely. “The euro exchange rate and Italian government bonds should only react to the outcome of the federal election when it becomes clear how a new federal government will position itself on the issue of joint borrowing within the EU,” said Krmer.
Robust economic data from the USA hardly moved the foreign exchange market. In the USA, orders for durable goods rose significantly more strongly than expected in August. It was the fourth climb in a row.
For other major currencies, the ECB set the reference rates for one euro at 0.85420 (0.85703) British pounds, 129.74 (129.49) Japanese yen and 1.0850 (1.0830) Swiss francs. The troy ounce of gold was trading at $ 1,754 in London that afternoon. That was around four dollars more than on Friday./jsl/he
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