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German elections: When are they, what’s being decided and how that will impact markets - MarketWatch

1. Germany's snap election may reshape leadership amidst economic stagnation. 2. Ifo business climate index is near its lowest since COVID-19. 3. Friedrich Merz's CDU is favored to lead with 29% projected votes. 4. Possible coalition with SPD could stimulate minor economic policy changes. 5. An AfD victory would significantly impact the euro and financial markets.

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FAQ

Why Bearish?

The uncertainty surrounding government formation may weaken the euro overall, as seen in past elections.

How important is it?

Election outcomes impact economic policy, thus influencing EURUSD exchange rates significantly.

Why Short Term?

Immediate reactions are expected post-election results, similar to previous elections in Europe.

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