Discover the effect that global political events have had on Forex markets in the UK, France and Germany using our interactive timeline. Each event gives an insight into the fiscal consequences of political actions in these three regions.
On this day the 12 member countries held the third direct elections to the European Parliament The Party of European Socialists won the highest share of the votes with 35 The officials elected to this parliament signed the Maastricht Treaty three years later which paved the way for the euro
Berlin Wall falls
Gunter Schabowski announced new regulations on the movement between East and West Berlin Miscommunication led people to flood to the wall and demand to be let through The Deutsche mark significantly depreciated in value
Germany reunifies
ThenbspGerman Democratic Republic GDR or East Germany joinednbspthe Federal Republic of Germany FRG or West Germany to form the reunitednbspnation of GermanynbspBefore the reunification of the two regions one West German Deutsche mark was the equivalent of 450 GDR marks After the collapse of the GDR the currency was set at a rate of 1 to 1
US government shuts down
President George Bush went back on a key campaign promise deciding to increase taxes during a budget negotiation to reduce the deficitnbspThis caused the US government to experience a shutdown resulting in a strengthened pound against the US dollar over the following days
UK joins Exchange Rate Mechanism (ERM)
Prime Minister Margaret Thatcher agreed to sign up to the ERM a system introduced in 1979 to reduce exchange rate variability and achieve stability Interest rates had been lowered from 1488 to 1388 in early October and as a result share prices and currency values rocketed
US government reopens
On the morning of Tuesday 9 October 1990 a deal was announced that would reduce cuts to Medicare and slash capital gains taxes It was passed by the House of Representatives reopening the US government The pound fell against the US dollar but did not drop to preshutdown levels
John Major wins leadership contest
John Major was declared the leader of the Conservative Party becoming prime minister on the evening of Tuesday 27 November 1990 This followed Thatchers formal resignation as prime ministernbspThe pound strengthened against the dollar as a result
Édith Cresson becomes Prime Minister
Eacutedith Cresson was appointed to the prime ministerial post by President Franccedilois Mitterrand on 15 May 1991 making her Frances first and only female prime ministernbspThere were fears that Cresson would not be as tough on fighting inflation to strengthen the French franc
European countries sign Maastricht Treaty
On 7 February 1992 12 countries signed the Maastricht Treaty which was later ratified by each countryrsquos parliament The treaty founded the European Union and established its structure The pound strengthened against the dollar
UK leaves Exchange Rate Mechanism (ERM)
Britain was forced to leave the ERM a system introduced in 1979 to reduce exchange rate variability and achieve stability This day would become known as Black Wednesday Interest rates were raised to increase demand for the pound with the aim of stabilising its exchange rate Rates rose from 10 to 12 in the morning and later that day John Major promised to raise them to 15
France holds referendum
France held a referendum on the Maastricht Treaty which was approved but only by 51 of the voters This treaty founded the European Union and established its structure It committed members to adopt a single currency and join the regional central bank by 1999
Single market launches
On this day the European single market was launched guaranteeing the free movement of goods capital services and labour within the European Union The free movement of capital lifted the previous restrictions on membertomember exchanges of currencies company shares and other financial assets
European Union (EU) begins
The EU and European citizenship were established when the Maastricht Treaty came into force in 1993 The treaty founded the EU and established its structure It committed members to adopt common foreign and security policies and to create a single currency and regional central bank by 1999
European Economic Area (EEA) forms
The EEA was established via the EEA Agreement which allowed for the extension of the EUs single market to nonEU member parties The EEA linked the countries into an internal market governed by the same basic rules with the aim of facilitating the free movement of labour goods services and capital within the European single market Currencies held their value in the following days against the greenback
Germany holds elections
Federal elections were held in Germany to elect the members of the 13th Bundestag The alliance between the Christian Democratic Union of Germany CDU and Christian Social Union CSU ndash led by Helmut Kohl ndash remained the largest faction in parliament This meant Kohl stayed on as Chancellor despite facing difficulties with the criteria for the launch of the euro Members of the European Union needed to coordinate budget deficits inflation and other economic indicators at specific levels The Deutsche mark fluctuated just three points in the following week against the US dollar
World Trade Organisation (WTO) is set up
The WTO set up to promote globalisation officially launched on 1 January 1995 under the Marrakesh Agreement signed by 124 nations on 15 April 1994 replacing the General Agreement on Tariffs and Trade GATT
Jacques Chirac wins French election
Jacques Chirac former premier of France succeeded Franccedilois Mitterrand as president Chirac was elected on a platform of tax cuts and job programmes The franc was turbulent in the run up to the election but recovered for a short while afterwards
US government shuts down
During President Bill Clintons first term the government shut down for five days This was due to a dispute over funding for Medicare The pound rose 034 against the dollar
US government briefly reopens
Congress passed a temporary spending bill reopening the US government but the dispute was not resolvednbspThe government had shut down due to a dispute over Medicare funding The pound rose 073 against the dollar
US government shuts down
This US government shutdown the second in two months lasted 21 days and was ndash until 2019 ndash the longest government shutdown in history However the shutdown didnt have a dramatic effect on the value of the dollar
US government reopens
After the 21day shutdown the White House and Congress worked out a balanced budget agreement and reopened the government This agreement included modest spending cuts and tax increases The euro and pound dropped sharply on the day
Tony Blair becomes prime minister
Tony Blair leader of the British Labour Party succeeded as prime minister During his tenure he proposed the lsquolsquoThird Wayrsquorsquo to realise social democracy The lsquoThird Wayrsquo is a political position often compared to centrism that tries to bridge between leftwing and rightwing politics The pound gained around half a percentage point against the dollar before the election It continued the trend with a 02 gain in the period following the election
European countries sign Treaty of Amsterdam
The Treaty of Amsterdam was signed making substantial changes to the Maastricht Treaty such as transferring certain powers from national governments to the European Parliament Thenbsporiginal treaty founded the European Union and established its structure It was in this treaty that the European Central Bank ECB was established The ECB is the central bank for the euro and administers monetary policy within the eurozone
Governments sign Good Friday Agreement
Britain the Republic of Ireland and Northern Ireland signed the Good Friday Agreement also known as the Belfast Agreement which provided for power sharing among the Protestants and Catholics in Northern Ireland The pound strengthened against the dollar and continued to rise over the next few days
Gerhard Schröder becomes chancellor
Gerhard Schroumlder became chancellor of Germany as head of a coalition between the Social Democratic Party of Germany SDP and the Greens During the campaign he represented himself as a pragmatic new social democrat who would stimulate economic growth while reinforcing Germanys generous social welfare systemnbsp Schroumlder was known for believing the introduction of the euro was happening too soon and would cost Germany jobs
Economic and Monetary Union introduces euro
The Economic and Monetary Union EMU entered stage three of the Maastricht Treaty which founded the EU established its structure and prepared for the use of a single currency ndash the lsquoeurorsquo Initially the euro was an invisiblersquo digital currency worth about 116 It started to physically circulate on 1 January 2002
Treaty of Amsterdam comes into effect
The Treaty of Amsterdam which called for substantial changes to the Maastricht Treaty such as transferring certain powers from national governments to the European Parliament came into effect The original treaty founded the European Union and established its structure It was in this treaty that the European Central Bank ECB was established The ECB is the central bank for the euro and administers monetary policy within the eurozone
German tax reform
Chancellor of Germany Gerhard Schroumlder managed to capitalise on a donations scandal of his Christian Democratic opposition to push through a landmark tax reform bill These reforms were oriented towards shortterm increases in stock prices
European leaders sign Treaty of Nice
The Treaty of Nice was signed by European leaders This reformed the institutional structure of the EU to withstand the challenges of eastward expansion The digital euro held its value against the US dollar in the following days
Ireland holds referendum
Ireland held a referendum on changes to their constitution that would allow its leaders to ratify the Treaty of Nice This treaty reformed the institutional structure of the EU to strengthen it against eastward expansion The proposal was rejected in a vote with a 34 turnout There were fears that the stronger economies of other member states would have to support the weaker economies of the candidate countries
Euro begins to circulate
When initially launched in 1999 the euro was an invisible currency but in January 2002 it started to be circulated as a cash currency and replaced notes and coins of countriesrsquo previous currency It was worth about 90 cents to the dollar
Germany holds federal elections
At the 22 September vote chancellor of Germany Gerhard Schroumlder secured another fouryear term with a narrow nineseat majority down from his previous majority of 21 seats Traders sold the euro as a result of this and caused German stocks to fall in price
Ireland holds second referendum
Ireland held a second referendum on the constitutional changes needed to ratify the Treaty of Nice This treaty was designed to reform the institutional structure of the European Union to withstand eastward expansion Changes to the text of the treaty meant this was approved in the second referendum The euro strengthened against both the US dollar and the pound in the following days
Treaty of Nice comes into effect
The Treaty of Nice which reformed the institutional structure of the EU to withstand eastward expansion came into effect It was designed to amend the Maastricht Treaty which founded the EU and established its structure The euro opened the market on the following Monday lower than it had closed against the greenback on the Friday
Agenda 2010 reform
Chancellor of Germany Gerhard Schroumlder outlined his proposed plans for reform Agenda 2010 This included a 25 reduction in the basic rate of income tax as well as cuts in the cost absorption for medical treatment pension benefits and unemployment benefits There were mixed reactions in the financial markets with many consequences not felt until a decade later
Alstom bailout
Despite past opposition to state intervention President Jacques Chirac agreed a euro28 billioneuro aid package to bail out manufacturing giant Alstom after the companyrsquos growing problems Earlier in the year Alstom lost 50 of its stock value in a single trading session when Pierre Bilger stepped down as chairman
Iain Duncan Smith resigns
Iain Duncan Smith resigned as leader of the Conservative Party after losing a vote of no confidence forcing him out of office barely two years after he took over from William Hague The result gave him 75 votes to 90 votes against with the pound strengthening against the euro in the following days
Blair announces potential resignation
Tony Blair announced his intention to resign as prime minister of the United Kingdom if Labour were to win the next general election This was so he would not have to stand for a possible fourth term in the positionnbspThe pound weakened against both the dollar and the euro
UK proposes referendum
UK Prime Minister Tony Blair announced there would be UK referendum on the Treaty establishing a Constitution for Europe However following the French and Dutch rejection of the treaty Jack Straw announced on 6 June 2005 that the plans for the referendum in early 2006 had been shelved The pound rose 091 against the dollar although had dipped slightly by the end of dayrsquos trading
European Union (EU) signs treaty on its constitution
The Treaty establishing a Constitution for Europe was signed in Rome by the 25 member states of the EU It was intended to replace the existing EU treaties with a single text give legal force to the Charter of Fundamental Rights and expand qualified majority voting into policy areas ndash which had previously been decided by unanimity among member states The euro strengthened against the dollar and the pound
Spain holds referendum
The consultative referendum on ratification of the proposed constitution of the European Union EU was approved by 818 of voters although turnout was just 418 It was intended to streamline the existing EU treaties with a single text give legal force to the Charter of Fundamental Rights and expand qualified majority voting into policy areas ndash which had previously been decided by unanimity among member states The euro strengthened sharply against the dollar in the following few days
France holds referendum
The French referendum on the Treaty establishing a Constitution for Europe was held to decide whether France should ratify the proposed constitution of the European Union EU It was intended to replace the existing EU treaties with a single text give legal force to the Charter of Fundamental Rights and expand qualified majority voting into policy areas which had previously been decided by unanimity among member states The result was a victory for the lsquonorsquo campaign with 55 of voters rejecting the treaty on a turnout of 69 The euro weakened against the pound and the dollar
The Netherlands holds referendum
A referendum on the treaty establishing a constitution for Europe was held in the Netherlands to decide whether the government should ratify the proposed constitution of the European Union It was intended to replace the existing European Union treaties with a single text give legal force to the Charter of Fundamental Rights and expand qualified majority voting into policy areas ndash which had previously been decided by unanimity among member states The proposal was rejected The euro weakened against the pound and the dollar
Luxembourg holds referendum
Luxembourg held a referendum on the Treaty establishing a Constitution for Europe It was intended to replace the existing European Union treaties with a single text give legal force to the Charter of Fundamental Rights and expand qualified majority voting into policy areas ndash which had previously been decided by unanimity among member states It was the last referendum to be held on the constitution as all other countries that had proposed one cancelled it The euro strengthened against the dollar
Angela Merkel becomes chancellor
On 22 November 2005 Merkel assumed the office of chancellor of Germany taking over from Gerhard Schroumldernbspfollowing a stalemate election that resulted in a grand coalition with the Social Democratic Party of Germany The euro strengthened against the dollar but weakened slightly against the pound
France scraps the contrat première embauche (CPE)
The CPE which included a measure to deregulate labour was scrapped after mounting pressure from protestors The next day the major acts of the protestors began to cease Initially the French index CAC 40 fell but had regained the lost ground by the end of the week
Romania and Bulgaria join EU
The 2007 enlargement of the EU saw Bulgaria and Romania join on 1 January 2007 Together with the ten countries that joined the EU in 2004 this was considered part of the fifth wave of enlargement of EU Although both new member states did not adopt the euro immediately they did not have the option to opt out of adopting the single currencynbsp
Transatlantic Economic Council launches
The Transatlantic Economic Council was set up between the US and EU It was created to direct economic cooperation between the two economies by creating more consistent objectives and regulations
Nicolas Sarkozy wins election
On this day Nicolas Sarkozy became the sixth person to be elected President of the Fifth Republic which was established in 1958 and the 23rd president in French history The euro weakened against the dollar
Sarkozy succeeds Chirac
Nicolas Sarkozy took over from Jacques Chirac with the official transfer of power from Chirac to Sarkozy taking place on 16 May at the Eacutelyseacutee Palace where he was given the authorisation codes of the French nuclear arsenal The euro dropped against the pound and the dollar
Gordon Brown becomes prime minister
Gordon Brown ceased to be chancellor of the exchequer and became the prime minister of the United Kingdom on 27 June 2007 succeeding Tony Blair The pound gained 27 against the dollar ahead of the election but weakened by more than 65 in the period following the election
Federal Reserve cuts funds
The Federal Reserve cut funds rate by 50 basis points resulting in the euro strengthening against USD
EU signs Treaty of Lisbon
The Treaty of Lisbon was signed by EU member states and was intended to amend the EUs constitutional framework in the wake of nine new members joining in 2004nbspThe euro and the pound weakened against the US dollar in the following week
Ireland holds first Lisbon referendum
Ireland held a referendum on the 28th Amendment of the Constitution Bill 2008 a proposed amendment to the constitution of Ireland ndash this was known as the first Lisbon referendum This amendment was intended to allow the state to ratify the Treaty of Lisbon which was designed to amend the European Unions constitutional framework in the wake of nine new members joining in 2004 It was rejected by Ireland The euro fell against the dollar but strengthened slightly against the pound
France votes on Modernisation of the Economy law
Parliament voted on the LME which loosened restrictions on retail prices and reduced limitations on the creation of businessesnbspThe euro fell against the greenback before strengthening two days later
UK lowers VAT rate
In the UK Chancellor of the Exchequer Alistair Darling announced plans to slash VAT from 175 to 15 as part of a pound20bn cash boost to revive the ailing economy The pound weakened against the US dollar in the following week
Germany re-elects Merkel
Angela Merkel was reelected as chancellor of Germany forming a coalition government with the Christian Democratic Union CDU Christian Social Union CSU and the Free Democratic Party FDP The euro strengthened against the dollar but weakened against the pound
Ireland ratifies Treaty of Lisbon
Having rejected the 28th amendment of the constitution in June 2008 in the first Lisbon referendum Ireland held a second referendum This time it was approved which allowed the state to ratify the treaty It was successful due to assurances that ratifying it would not affect Irish tax policies The Treaty of Lisbon was intended to amend the European Unions EU constitutional framework in the wake of nine new members joining in 2004 and was signed by EU member states The euro strengthened against the pound in the following week
Greek government revises deficit forecasts
The newlyelected Greek government revised deficit forecasts from 67 of GDP to 127 of GDP The Greek crisis had started in late 2009 triggered by the turmoil of the Great Recession structural weaknesses in the Greek economy monetary policy inflexibility and revelations that previous data on government debt levels and deficits had been underreported by the Greek government
Treaty of Lisbon comes into effect
The Treaty of Lisbon came into force and was signed by EU member states It was intended to amend EUs constitutional framework in the wake of nine new members joining in 2004
Gordon Brown triggers election
Gordon Brown asked the Queen to dissolve Parliament The general election campaign included the first televised leadership debates in Britain The result of the election on 6 May was a hung parliament The pound dropped by 109 but recovered quickly over the next few days
Leaders resolve to protect euro
Leaders of the eurozone countries resolved in Brussels to take drastic action to protect the euro from further market turmoil after approving 100 billion bailout plan for Greecenbsp
Cameron becomes PM
Following the resignation of Gordon Brown David Cameron became Prime Minister of Britain forming a coalition government with the Liberal Democrats The pound rose from pound116 to pound118 against the euro by close of trading in London and advanced against the dollar to 150 from 148
European Central Bank (ECB) purchases bonds
Several eurozone member states were unable to repay or refinance their government debt or to bail out overindebted banks under their national supervision without the assistance of third parties like the ECB The ECB was reported to be purchasing government bonds on a large scalenbspThe euro strengthens against USD over the next two days
Germany continues with bailouts
The Federal Constitutional Court of Germany rules that Germany can continue to contribute to eurozone bailouts despite increasing anger among Germans regarding its contribution Some polls suggested this could result in a majority of Germans rejecting further integration and fuel demand to leave the European Union
Berlusconi and Tremonti clash
A public disagreement between Italian Prime Minister Silvio Berlusconi and Finance Minister Guilio Tremonti sparked fears that the latterrsquos position was in jeopardynbspThe euro dropped 17 in a day against the dollar
Sarkozy and Merkel form agreement
Nicolas Sarkozy and Angela Merkel make an agreement that no losses will be automatically imposed to private investors in the European Stability MechanismnbspThe European stock markets reacted well to this news although Forex was sedate
François Hollande wins French election
The first round of the presidential elections resulted in Franccedilois Hollande coming in first place with 2863 of the vote and facing Nicolas Sarkozy in a runoff In the second round of voting on 6 May 2012 Hollande was elected with 516 of the vote The euro began to depreciate in the coming weeks as Hollande wanted to change the approach to the eurozone crisis
Hollande becomes president
Franccedilois Hollande was inaugurated on 15 May 2012 and shortly afterwards appointed JeanMarc Ayrault to be his prime minister He was the first Socialist Party president since Franccedilois Mitterrand left office in 1995 The euro weakened against the dollar
G20 summit takes place
The G20 summit in Los Cabos reported that European leaders were poised to announce a euro750 billion deal to bail out Spain and Italy It was the seventh meeting of the G20 heads of government and heads of state The euro rose sharply against the US dollar the next day before dropping in the following week
EU leaders hold summit
Reports of Germany accepting demands made by Italy and Spain for immediate aid during the European Union EU leadersrsquo summit emerged The summit is the meeting of the heads of state and government of the member states of the eurozone The week before the meeting the Dow Jones experienced a selloff amid doubts that the European leaders would come up with a plan to prevent the eurozone crisis deepening However when they did emerge with a pact to strengthen the euro the Dow Jones recovered
Italy holds elections
A general election took place on 24ndash25 February 2013 to determine the 630 members of the Chamber of Deputies and the 315 elective members of the Senate of the Republic for the 17th Parliament of the Italian Republic The election ended in a hung parliamentnbspThe euro fell in the lead up to the general election and continued to drop afterwards
Croatia joins EU
The 2013 EU enlargement saw Croatia join the EU as its 28th member state on 1 July 2013 Croatia did not join the eurozone ndash though it is expected to do so in the future ndash but the kuna was pegged to the euro
Merkel gets a third term
Angela Merkel was reelected as chancellor of Germany for the third time forming a coalition between the Christian Democratic Union CDUCSU and the Social Democratic Party SPD The euro dipped against the dollar
US government shuts down
From 1 October to 17 October the United States federal government entered a shutdown and paused most routine operations This was because Congress could not agree a budget for the fiscal year 2014 Concerns about the US debt ceiling worried forex traders causing the US dollar to trade 03 lower against a basket of other major currencies Gold rallied amid the economic uncertainty while copper traded at a weekly low
US treasury issues warning
The US treasury department warned it could run out of money within a day causing the Senate and the House of Representatives to approve a proposal ending the shutdownnbspThe euro and the pound both strengthened against the dollar
French parliament approves pension reform
French parliament approved a contentious pension reform aimed at reducing an increasing pension deficit The pension reform was designed to tackle vulnerabilities of the pension system such as financing needs insufficient governance and inequalities The euro held its value against both the US dollar and the pound
Scotland holds referendum
Scotland voted in a referendum on whether to leave the UK The proposal was not accepted and Scotland remained in the union The pound briefly jumped against the dollar but lost its gains as the day progressed
Cameron wins second term
David Cameron was reelected prime minister and the Conservative Party won an outright majority The Conservative Partys decisive win in the general election was a surprise victory as most polls and commentators predicted the outcome would be too close to call and result in a second hung parliament The pound surged against the dollar
Donald Trump wins US elections
Businessman Donald Trump won the US elections to become the 45th President of the US The dollar crashed against safehaven currencies and even fell against those currencies not traditionally considered safe
Greece negotiates bailout
Greece and the rest of the eurozone reached an agreement on a third bailout to keep the country in the eurozonenbspThis alleviated market concerns of a Greek exit from the eurozone however the euro dropped against the US dollar in the following three days before experiencing a large surge
Corbyn becomes Labour leader
The 2015 Labour Party leadership election was won by Jeremy Corbyn with a landslide victory The election was triggered by the resignation of Ed Miliband as leader of the Labour Party on 8 May 2015 following the partys defeat at the 2015 general electionnbspEurosceptic Corbyn made investors nervous however the result had little effect on the US and euro markets
UK announces Brexit referendum
David Cameron announced the UK would hold a referendum on 23 June 2016 on whether they should remain in the EU or not under the provisions of the European Union Referendum Act 2015 and the Political Parties Elections and Referendums Act 2000 The pound weakened against the dollar and continued to drop for a few days
Boris Johnson backs Brexit
Former Mayor of London Boris Johnson spoke out in favour of the UK leaving the EU which was interpreted by financial markets as making Brexit more probablenbspThe pound fell to a sevenyear low
EU and Turkey sign migrant agreement
In March 2016 the EU and Turkey reached an agreement aimed at stopping the flow of irregular migration via Turkey to Europe The markets remained sedate despite leaders being asked to provide euro6 billion over three years
UK votes to leave the EU
The UK held a referendum on whether to remain in or leave the EU Leave won 52 of the vote while remain got 48 A petition calling for a second referendum attracted more than 4 million signatures but was rejected by the government on 9 July The pound fell to a 31year low against USD
Theresa May becomes prime minister
After a leadership contest in which she was the only remaining candidate Theresa May became prime minister of the UK She was appointed prime minister by Queen Elizabeth II becoming only the second female British prime minister after Margaret Thatcher The pound gained nearly 2 in one day
Justin Trudeau Signs Comprehensive Economic and Trade Agreement
Justin Trudeau travelled to Brussels to sign CETA ndash a freetrade agreement between Canada and the European UnionnbspThe trade deal was expected to inject euro12 billion into the European economy and around C12 billion into the Canadian economy The euro surged against the dollar
Dutch Nationalism Spikes
In the Dutch general election it looked as though Geert Wilders leader of the farright PVV was in with a chance of winning the election Wilders is antiEuropean Union so there were fears that a Nexit could occur if he were elected The euro weakened against the dollar
May triggers Article 50
Theresa May triggered Article 50 thus beginning the process of leaving the EU which was set to occur on 29 March 2019nbspThe pound lifted slightly against the euro though showed little change against the dollar
Marine Le Pen pulls ahead in election
Marine Le Pen performed well in the first round of the French election As a result of her desire to pull France out of the eurozone investors began selling the euro decreasing its valuenbsp
Emmanuel Marcon becomes French president
Emmanuel Macron officially became president of France taking over from Franccedilois Hollande and beating Marine Le PennbspAt 39 he became the youngest president in French history and the youngest French head of state since Napoleon The euro strengthened against USD
Tory and Democratic Unionist Party (DUP) coalition forms
The UK voted in the snap general election that Theresa May had called and although May won the Conservative Party lost their majority This forced them to form a coalition with the DUPnbspThe pound lost around 2 against other currencies
Germany holds federal elections
Federal elections were held in Germany and the Christian Democratic Party CDUCSU led by Chancellor Angela Merkel won the highest proportion of the votes but suffered a huge dent in popularity The euro fell around euro001 overnight against the pound following the election
Catalonia holds independence referendum
The Spanish region of Catalonia held a referendum on its independence The region voted overwhelmingly to leave Spain but the government refused The euro dipped slightly following the referendum but recovered in the following days
Macron abolishes wealth tax
Emmanuel Macron abolished the wealth tax ndash a charge levied on individuals with assets worth over euro13 million While the move was heavily criticised France was the only European Union country left with a wealth tax The euro held its value against both USD and the pound
Coalition talks collapse in Germany
Coalition talks in Germany collapsed when the probusiness Free Democratic Party FDP walked out of marathon negotiations due to the inability to produce a common vision or trust The euro fell slightly against the dollar
US government shuts down
The US government shutdown began after the White House and Congress failed to strike a compromise on a government spending bill This stemmed from disputes over the extension of status of those affected by the Deferred Action for Childhood Arrivals DACA immigration policy The pound strengthened against the dollar but the euro weakened slightly
US government reopens
The US government shutdown came to an end as Senate Democrats adopted a shortterm spending bill to fund government operations According to estimates by the New York Times 692900 workers were furloughed during the shutdownnbspDuring the shutdown the pound gained 187 on the dollar
Germany forms coalition
The Christian Democratic Party CDUCSU and Social Democratic Party SPD announced that a final coalition agreement had been reached between the parties to form the next government Chancellor Merkel said the agreement gave the basis for a lsquogood and stable governmentrsquo The euro strengthened against the dollar
Angela Merkel announces step down
Angela Merkel announced she will not seek reelection when her term in office ends in 2021 She also stated she would not seek any further political offices and clarified she would not stand in any snap election that occurred before 2021 This led investors to further question the future of the eurozone and the euro The Swiss franc and gold increased in price over the next few days suggesting investors were looking to protect themselves from the uncertainty
Raab and McVey resign from UK cabinet
Dominic Raab and Esther McVey resign over disagreements about Theresa Mays Brexit plan The pound fell 19 against the dollarnbsp
May delays Brexit plan vote
Theresa May postponed the Commons vote on her deal after a lastminute conference call with cabinet ministers Sterling fell 16 against the euro to euro11007 and dropped 157 against the greenback to hit 12526
US government shutdown
The US government shut down when Congress and the White House failed to agree on the inclusion of an annual spending bill for additional fencing along the US border with Mexico The euro the largest component of the dollar index fell 07 versus the dollar to 11369
May's deal voted down
Theresa Mays withdrawal deal is voted down in a historic defeat in parliament MPs voted by 432 votes to 202 to reject the deal which sets out the terms of Britains exit from the EU on 29 March The pound lost 1 of its value initially but then continued to rise shortly after the defeat
US government reopens
President Trump announced his support for a threeweek funding measure that would reopen the government until 15 February ending the longest US government shutdown in history There were muted forex reactions to this announcement across the world suggesting that a great deal of uncertainty remained
Brexit vote delay
On this day Prime Minster Theresa May announced that if no deal was agreed and a hard Brexit was taken off the table then there might be an extension of the Brexit timetable The news caused the pound to rise against the euro reaching euro116
Legally binding changes
Theresa May has agreed revised assurances from JeanClaude Junker ahead of the meaningful vote in the House of Commons on 12 March 2019 After she made her speech announcing the assurances the pound strengthened against the euro
MPs reject May's deal again
MPs voted to reject Theresa Mays EU withdrawal deal for a second time after the assurances she sought regarding the backstop appeared not to be legally binding The pound dropped 1 against the euro
MPs reject May’s deal a third time
Theresa Mayrsquos deal was voted down in parliament for a third time and the value of the pound immediately dropped by 04 against the dollar despite a rise earlier that day
Parliament holds a round of indicative votes
UK parliament voted on a number of alternatives to Theresa Mayrsquos withdrawal agreement but failed to reach a consensus on any of them Following the announcement the pound crashed after trading at 1311 against the US dollar to 1305