March 5 (Reuters) - News that the parties expected to form Germany's next government have agreed to reform the country's debt rules could propel EUR/USD to 1.09 for the first time since November's U.S. presidential election.

The deal to overhaul German borrowing rules agreed between the CDU-CSU and the Social Democrats on Tuesday will be put before the Bundestag next week, when two-thirds of lawmakers must vote in favour for it to pass.

News of the deal has boosted the euro, with EUR/USD soaring to an EBS high of 1.0696, its highest level since Nov. 11. The single currency has also risen sharply against the yen, pound and Swiss franc.

With the 30-year bund yield set for its biggest daily rise since the late 1990s, the deal has also fogged the outlook for interest rate decisions from the European Central Bank, beyond the 25 basis point cut expected on Thursday.

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(Robert Howard is a Reuters market analyst. The views expressed are his own)