German citizens head to the polls on 24 September for national elections. Like the previous elections in Europe, the German ballot has the potential to cause major swings in various markets and is seen as having widespread implications for the future of Europe. Merkel, the favourite to win the election, stands for continuity and stability and the prospect of her winning the election is regarded favourably by the markets and could potentially benefit the Euro and Euro-based pairs. However, the dynamics of government coalition are fluid, which makes it difficult to predict the election outcome, leaving room for an exciting election campaign.
The key players
Angela Merkel | Christian Democratic Union (CDU) | 40%
Martin Schulz | Social Democratic party (SPD) | 23%
Sahra Wagenknecht and Dietmar Bartsch | Linke (Left party) | 8%
Alice Weidel and Alexander Gauland | Alternative for Germany (AfD) | 9%