Euro falters amid German political concerns

German elections are scheduled for this weekend, and currency traders are beginning to price their predictions into the forex markets. The consensus implications for the Euro are as follows: a Gerhard Schroeder victory will likely send the Euro reeling, while an Angela Merkel victory will likely prop of the currency. Schroeder is the incumbent German Chancellor, and Merkel is the challenger. Investors generally feel a Merkel victory will benefit the German economy, for she has promised to implement certain structural reforms intended to revive Germany’s ailing economy. Regardless of who wins, you can expect significant Euro volatility in the days following the election. The Wall Street Journal reports:

"Germany faces the risk of a political deadlock after the elections . . . this doesn't bode well for further reforms in Germany and therefore could weigh on the euro," said a senior currency strategist.

Read More: Euro Falls on Views on Election