EUR just above the 1.1850 handle. Whether it goes substantially above that (to 1.1875-1.19) depends on clarity - or at least sustained hope - that Schulz and Merkel will get the band back together. Even if SDP is just a nominal partner in a minority govt.
We may not get the definitive answer today. Reportedly there will be a larger SDP congress meeting early next week (Tue).
Morning positioning: Tactically long EUR (on some break above 1.1850) and tactically short NZD and JPY to reflect some modest Dollar retracement today. Anticipate NZD weakness to more than compensate for JPY weakness if risk-off mood intensifies during Asian hours (as Chinese equities open in the red). NZ trade deficit came in weaker earlier this morning.