The elections in Finland this weekend yielded a strong result for the True Finns, who could form a part of the next coalition government. We look at the implications this election result has for the Euro this coming week.
The True Finns gained 19% in vote – a few percent more than expected and only a hair behind the Social Democrats for third largest party overall. This was after only garnering 4.1% of the popular vote in the previous election. This result is significant because:
The True Finns gained 19% in vote – a few percent more than expected and only a hair behind the Social Democrats for third largest party overall. This was after only garnering 4.1% of the popular vote in the previous election. This result is significant because:
- The True Finns are against extending more money to all Euro bailout efforts
- True Finns could form part of a new coalition government
- Besides, all votes on Euro matters in Finland are by Parliament as a whole, not just the rulling government (which is usually the case elsewhere)
- All EuroZone decisions must be unanimous
See more on this breaking story in the WSJ article True Finns Cast Finland Support for EU Bailouts into Doubt
For a confirming indication on the direction of the Euro today and this week, watch Spanish debt spreads as measure of pressure on Euro – we saw a big widening last Thu-Fri that wasn’t really reflected in the market, which was distracted by some negative US data. Technical support in EURUSD at 1.4250 is key – if it breaks below that, we could begin to talk about bigger consolidation potential.To the upside, the 1.4375 area is a slight upside resistance/pivot now that it has broken in Asia and 1.4440 is the weekly pivot.
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