Trading the German election: Five points to consider

By Alpha Trader
September 23, 2017

On September 24, Germans vote to elect their Bundestag, the lower house of parliament.

Opinion polls in Germany indicate that Angela Merkel will be re-elected as the Chancellor but will that be enough to ensure after-election political stability?

  1. For the first time in 27 years, six parties may enter the parliament, resulting in a rather divided parliament.
  2. The CDU/CSU coalition is unlikely to gain majority.
  3. The far-right party(AfD )is expected to win few seats but the other parties will possibly be reluctant to work with them.

    Implications of German elections for traders
  4. ‘There is a possibility for greater price fluctuations on all EUR pairs and major market movements
  5. A possible impact on German Stock Index DAX 30 and other major indices is also expected
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