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• The euro hit a two-month low against the yen on Monday, as German Chancellor Angela Merkel’s efforts to form a three-way coalition government failed, stoking political uncertainty in the euro zone’s largest economy.

The euro fell 0.5 percent against the dollar to $1.1735, pulling away from a one-month high of $1.1862 set on Wednesday last week.

The euro’s retreat helped support the dollar against a basket of six major currencies, with the dollar index edging up 0.3 percent to 93.968.

• The Euro and Dollar is in process of waiting for a new direction. The reason is that after more than one month of weak dollar and partially recovery of the dollar is time for new events to put the new trend. In the coming week the news come first on Monday when at 14:00 GMT is ECB President Draghi's Speech and on Tuesday at 23:00 GMT Fed's Yellen Speech.

On Wednesday also World-Signals.com recommend to focus over FOMC Minutes that may send another signals for interest rates changes in United States. USA inflation will cause 0.25% interest rates hike in the next Fed meeting or latest within 3-months ahead.

At the same time ECB probably will hold the interest rates at the same level as long as possible.

There is not clear indicator for the trend this week as we recommend to trade after the key news on Monday and Tuesday with the new trend. We will use the trading idea to buy EURUSD at 1.1680 with target above 1.1870.

• Last week ECB President Draghi reiterated the positive outlook for the euro area economy citing deleveraging, increasingly endogenous growth and signs that the economy is becoming more resilient to shocks, as positive factors for the outlook, explains the research team at ANZ.

ECB President Mario Draghi will deliver an introductory statement at ECON Hearing of European Parliament in Brussels, Belgium at 14:00 GMT. He appears in news twice at 14:00 GMT and 16:00 GMT as ESRB Chair at ECON Hearing.

• UBS, Royal Bank of Scotland, JPMorgan Chase, Citigroup, Barclays, HSBC and two other banks are reportedly willing to negotiate settlements with European regulators, likely to cost billions of euros combined, after a four-year probe into rigging in the forex market, the Financial Times reported.

• Canada and Mexico will not make counterproposals to U.S. demands for tougher NAFTA automotive content rules but instead will offer rebuttals and pepper American negotiators with technical questions on Monday, people familiar with the talks said.

Canada will make a presentation arguing U.S. demands would cause serious damage to U.S. as well as North American automotive manufacturing, a Canadian source with knowledge of the negotiations said.

• The top US nuclear commander said Saturday he would push back against an order from President Donald Trump for a nuclear strike if it were "illegal."

Speaking at the Halifax International Security Forum in Nova Scotia, Canada, Gen. John Hyten, who is the commander of US Strategic Command, shared what would happen if he were ordered to launch a nuclear strike.

• Goldman currently sees an 80 percent chance that tax reform gets done in early 2018, Himmelberg said. However, "if tax legislation fails to pass, it would be the second major legislative failure during President Trump's first year in office."

• Prime Minister Theresa May on Monday announced 4 billion pounds of spending on research and development and regional growth strategies, setting out plans to help the economy grow after Brexit.

Amid stiff international competition, Britain is looking to carve out a new global role as a leader in “industries of the future” such as artificial intelligence and driverless cars after it exits the European Union in March 2019.

• British households felt more of a squeeze on their finances this month, a survey by data firm IHS Markit showed on Monday, and credit card firm Visa predicted spending over the Christmas holidays would fall in real terms for the first time since 2012.

The IHS Markit Household Finance Index for November fell to 43.4, reversing some of October’s improvement to 43.8. Respondents were their most pessimistic about the outlook for their finances since June.

• Japanese Prime Minister Shinzo Abe said on Monday that the government and the central bank would work closely together and take all necessary steps to defeat deflation.

Speaking in parliament, Abe said he hoped the Bank of Japan would continue its bold monetary easing to hit a 2 percent inflation target, adding that he would leave specific monetary policy steps to the central bank.

• China issued guidelines on Monday aimed at boosting private investment in manufacturing, including stepping up fiscal support and “innovative financing” for private firms to gear towards greener development and move up the value chain.

• Zimbabwe’s ongoing crisis descended into outright chaos on Sunday after president Robert Mugabe failed to announce his resignation as widely expected in a national address on live television.

Instead, in a rambling 30 minute address, Mugabe offered no concessions to his critics, the tens of thousands who marched calling for his resignation or the army commanders who led the military takeover last week.

• Oil markets were tepid on Monday as traders were reluctant to take on big new positions ahead of an OPEC meeting at the end of the month, when the producer club is expected to decide whether to continue output cuts aimed at propping up prices.

Brent crude futures LCOc1, the international benchmark for oil prices, were at $62.56 per barrel at 0439 GMT, down 16 cents, or 0.3 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $56.59 a barrel, up 4 cents, or 0.1 percent, from their last settlement.

Reference: Reuters, CNBC, The Guardian, Financial Times