Germany to gear up steam again?

Important News for the week

• Tue, 25th, 16:00 CET US CB consumer confidence.

• Wed, 26h, 01:30 CET AU Consumer price index.

• Fri, 28th, DE preliminary consumer price index.

• Fri, 28th, 14:30 CET AU Core PCE index.

German election

The Christian Democratic party in Germany has won the election. With nearly 29% of votes they were able to gain traction again, similarly to the AfD, which was able to gain more than 10% compared to the last election. Previously the government had been formed by the Social Democrats, the Greens and the Free Domats, which had all suffered losses during this election. Friedrich Merz, the leader of the CDU is likely to lead the country with a coalition moving forward. He aims to increase the competitiveness of the country, secure its borders and reduce energy cost again. Many corporations have left the country to produce their goods elsewhere. Germany is the third biggest economy in the world and has lost competitiveness under the recent government.

Market talk

The Dollar is gearing up slight steam during trading so far this week. Equities started to resume some upside but might still be poised for further losses. The oil market is showing clear signs of further weakness, which might be a sign for the current economic development. Silver might also be poised for fresh losses ahead, whereas the rising Gold price signals demand of investors to fade away from risky investments. Crypto markets remain shaky with in particular Solana looking very bearish moving forward.

Tendencies in the markets

• Equities sideways, USD stronger, cryptos weaker, oil weak, Silver weak, Gold positive, JPY stronger.