Global markets have been nervous lately, but the source of their worries this time isn’t in the eurozone. Instead, political uncertainty has risen around the US, as the White House under President Trump is in turmoil. The UK, meanwhile, is struggling after the 2016 upset vote of the British people to leave the European Union to address the political and economic challenges of Brexit.
From an economic point of view, such uncertainty tends to support the euro against the dollar and the sterling pound. From a political point of view, the centre electorate seems to have been unsettled by what is happening in the UK and US and has been frightened off the extremist-populist parties.