Germany’s Federal election 2017, is due to be held this Sunday 24th September. It could prove illuminating about the political fortunes of Germany and the EU at large.
Don’t hold your breath however. It looks like more of the same. Even if there is a reduced majority held by the CDU/CSU coalition under Angela Merkel, German stocks should rally off the back of the election result. The rally will be a muted affair however.
EURUSD will also rally in line with our previously published forecast of 1.22-1.23. There is not enough of a biased sentiment to be able to predict an outcome based on the “Law of Contrary Opinion”.
It seems the important game changing news is more to do with the US Federal Reserve decision. They plan to wind down its balance sheet which will have far lasting repercussions.