According to a report, the euro will not be reelected to the presidency of the German party

The euro was briefly weakened on Monday after the announcement by German Chancellor Angela Merkel not to seek reelection to the party presidency, thus marking the end of a 13-year period during which she dominated European politics.

The euro fell 0.4% to 1.136 dollars after announcing the announcement, allowing its Christian Democratic party to prepare its successor.

The currency eventually recovered to trade at a 0.1% drop on the day at $ 1,1387.

Merkel has occupied a prominent place on the European scene since 2005, helping to guide the EU through the eurozone crisis and opening the gates of Germany to migrants fleeing the war in the Middle East in 2015 – an initiative that still divides the block and Germany.

"The euro has come under pressure because it is perceived as a pro-European force, despite being a tough bailout negotiator," said Ulrich Leuchtmann, chief investment strategist for the euro. changes at Commerzbank.

Merkel's weakness at home could limit her ability to take the lead in the European Union at a time when the Union is grappling with Brexit and a fiscal crisis in Italy.

The dollar has reached a 10-week high against a basket of other currencies, worries about global growth invading the markets.

Global stocks sold in October due to concerns over corporate profits and geopolitical uncertainties.

This helped to lift the greenback, a currency that typically outperforms during risk-free periods but only strengthened moderately.

"This probably reflects a number of factors, including the long dollar positioning and, at the end of this week, a modest revision of the Federal Reserve's forecast," said Zach Pandl, co-director of Foreign Exchange Operations at Goldman Sachs.

The dollar index rose 0.2% to 96.57 after rising 0.7% last week, after peaking at ten months.

The dual tariffs imposed by the United States and China have also pushed up the dollar. The market has assumed that if the US economy is hit by a reduction in trade, it will be less affected than its trading partners.

"Maintaining the dollar offer this week should be a continuation of strong US data, and we will closely monitor the situation in China," said Chris Turner, head of FX strategy at ING.

After a consecutive weekend of slowing Chinese earnings growth for the fifth consecutive month in September, the Chinese yuan has weakened, but remained above the trough of 6.977 on Friday, the lowest since January. last, at 7.00.

"If level 7 were to be exceeded, we would expect the USD / Asia, and probably the USD / EM in general, to take a new step higher and the dollar to be offered to all. levels, "said Turner.

The US economy slowed less than expected in the third quarter, as evidenced by data released on Friday, the strongest consumer spending in nearly four years and an increase in inventory investments offsetting a decline in rights-based soybean exports. customs.