It seems that today, the situation on global markets will be calm, as no information or important statistical data is expected, but tomorrow investors can be energized, as the day will be full of events and released economic data.

The expected victory in the pre-election race of Angela Merkel and her party in Germany did not come as a surprise, but this time, it is important that the the government will be a coalition and diversified, and for the first time in the German parliament there will be representatives of the right-wing. Only time will tell how much the new government will be successful in solving the problems of Germany, but the markets reacted predictably to the results of the elections - they began to fix profits, which led to negative dynamics on European stock exchanges, as well as to local depreciation of the single currency in the Forex market.

Now the focus of the market has shifted to the results of the ECB's October meeting, from which a "decision" on the program of measures to stimulate the European economy is expected. Investors have doubts that Mario Draghi and the ECB will decide to stop these stimulus measures, as inflationary pressures in the euro area remain weak, which can stop the regulator from such decision. At best, it could decide to reduce the volume of the support program, and nothing more.

Another hindrance is the Fed's desire to continue raising rates, as well as its initiative to start reducing the balance already next month.

Out of all the important events of this week, it is worth mentioning the speeches of ECB leaders Mario Draghi and Janet Yellen. The most interesting is particularly Draghi's speech, because he will speak after the outcome of the elections in Germany, which were a deterrent in the decision on the future of incentive measures. Whether he sheds light on the decision on incentives at today's press conference, it is difficult to say, but it is likely he will do it. If he again avoids this topic, one can expect the weakening of the single currency, although not so noticeably, since the outcome of the October meeting of the ECB will be decisive.

Forecast of the day:

The EURUSD pair has gone to the lower limit of the range of 1.1875-1.2040 following the results of the elections to the German parliament, which did not reveal any conclusive leading party, which will cause the creation of a new coalition, which can already result in the impossibility to make important and crucial decisions quickly and efficiently. Given this, it can be assumed that the pair may be under pressure and after breaking through the level of 1.1875 it will rush to 1.1690.

The EURGBP pair may continue to decline to 0.8650 amid the weakness of the euro and high expectations for rates hike by the Bank of England before the end of this year. A break of 0.8780 could lead to a price drop to 0.8650.