Euro Lower after Election in Germany

The Euro fell overnight as a virtual tie occurred in their national election over the weekend. This result caused any to fear that the reforms the market saw coming were to be delayed. This result should keep interest rates soft in the near term as any consensus will be hard to come by. ECB president Trichet said on Monday that Euro zone interest rates were at historic lows and that reforms needed to take place. The fall in the Euro was not a big surprise to me (although I was not short over the weekend). It was in my opinion the path of least resistance. I look for further downside in the days to come.

These are the FX trading ideas for today.

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