The reform mandate is probably not going to be as strong as it would have been under an outright victory by Merkel.
The yen has retraced some of its recent losses against the dollar, but expectations of a strong U.S. consumer confidence number are keeping the dollar broadly supported.
It's just a little bit of a correction on the yen front. The Nikkei (stock market average) was down quite sharply overnight but everything points to a stronger yen still developing.
The PCE deflator will be extremely important today. The market looks at this very much as one of Fed's main indicators. If it's strong the market will not only be looking for a rate hike at this meeting but next time around as well.
The PCE deflator will be extremely important today. If it's strong the market will not only be looking for a rate hike at this meeting but next time around as well.