German election

EURUSD, DXY Outlook: the EURUSD and DXY are currently on a market hold, influenced by German deflation risks, U.S. inflation concerns, ongoing Russia-Ukraine peace negotiations, and Germany’s evolving political landscape.

Lingering tensions between the US and Europe could temper risk appetite, particularly after last week’s cautious trading, when concerns over US President Donald Trump’s stance on tariffs, coupled with stretched valuations, unsettled investors. For these reasons, we maintain a cautious DAX forecast despite a positive start to the week.

EUR/USD rises as investors cheer the German election result. GBP/USD rises ahead of Trump & BoE Ramsden's speeches.

Optimism surrounding peace negotiations in Ukraine has provided modest support to the EUR/USD outlook. However, sentiment has taken a slight knock in recent days amid tariff concerns and a brewing dispute between President Donald Trump and Ukrainian President Volodymyr Zelenskiy. That said, hopes remain that a deal could eventually be reached.

Different German Election coalition scenarios could have dramatically different impacts on the DAX and key German stocks like Volkswagen, Siemens, SAP, and Deutsche Bank.

The SPD party led by Olaf Scholz won the most votes in the German election. Coalition talks will now take place. These negotiations can be lengthy. EURUSD trades mildly lower.

The German election result has proved to be even closer than the polls suggested in the lead-up.

Next week Germany goes the polls to vote in its new parliament, which means a new German Chancellor will be taking the helm. The current favourite is the Social Democratic Party leader Olaf Scholz. Who is he and what could Germany look like with him in charge?

Below, we explore the possible implications for the DAX under coalitions led by each of the three leading parties...

In the lead up to the hotly-contested election, we’ll share a series of articles analyzing how major markets may react under different scenarios, starting with today’s look at the euro...

On September 26 2021, Germany will go to the polls to elect its next federal parliament. Learn how to trade the next German election with our huge range of markets.