It’s the Dollar Vs. the Euro

The US equities markets bounced higher on a weakening US dollar and renewed optimism on global trade. The dollar dropped due to strength in the euro currency after EU leadership reached a difficult agreement on immigration policy. In particular, this gives hope to investors that Angela Merkel’s coalition government in Germany will survive the current crisis facing the government of Germany as well as the European Union as a whole. However, I doubt this will be the end of tensions, as sentiment against the current EU establishment run much deeper than was previously acknowledged by them or the mainstream press. With this in mind, we can expect volatility to remain relatively elevated. Here’s what to expect.