Hopes for recovery of euro evaporated after political news from Germany, Bloomberg reports.

Europe’s common currency may demonstrate the biggest monthly losses since May after Angela Merkel said that she is not going to participate in elections of party’s leaders in December and of Germany’s Chancellor in 2021.

As a result euro already lost more than 5% this year. On Monday euro dropped below $1,14 level.

The currency was already hit by growing difference between interest rates in the US and Europe, as well as by political risks in Italy. And although Bloomberg’s forecast is $1,16 this year and $1,25 by the end of 2019, mood at the market is not optimistic at all.