The euro exchange rate was supported after Germany voted in favor of negotiations on the establishment of a "grand coalition" with Merkel. This event helped to keep the EUR/USD pair above the level of 1.22, and in the future we can expect the growth of the single currency.
This week we are awaiting the release of a number of macroeconomic indicators which can support the single currency and push the mark of 1.25 as the euro found new support from the publication of the ECB's minutes of the meeting which refers to a possible change of the bank's monetary policy in 2018.
In the United States lawmakers have not agreed and there is currently a threat for the government's work. The last time when the government suspended its operations was in October 2013 under the presidency of Barack Obama. We do not expect that this event will have a lasting effect on the financial markets. At the moment the markets are most influenced by the expected publication on Friday of the growth of the GDP report for the fourth quarter of 2017, as well as next month's inauguration of Jerome Powell as head of the Federal Reserve.
