Eurozone next week: focus on German politics - Danske Bank

Next week is set to be fairly quiet in terms of data releases and more focus will be put on speeches/political events, explain analysts at Danske Bank.

Key Quotes: 

“No big market movers area released in the euro area in the coming week, but we will watch out for new developments in the German coalition talks, as parties have set themselves a deadline of 4 February to wrap up the coalition negotiations. If that goal is met, the SPD plans to hold a nationwide member ballot on the final coalition agreement, which could take up to three weeks to organise.”

“We think this could still be a big hurdle for the government formation process in Germany, as many SPD members remain sceptical about another grand coalition with Angela Merkel and the outcome will crucially depend on how many of its flagship policies the SPD can include in the final agreement.”