Retail FX and CFD broker FxPro is warning traders of possible market swings stemming from the upcoming German Election.

Germany heads to the polls on Sunday, February 23, in a snap federal election that could reshape economic policy and create significant market volatility. With a divided electorate and multiple coalition possibilities, traders are preparing for potential market gaps and price swings as markets open on Monday.

Which Markets Could Be Affected?

• DAX 40

Germany’s benchmark stock index has climbed 12% this year, frequently hitting record highs. However, election uncertainty could bring sharp movements, making it essential to watch key technical levels.

• German Stocks

Major companies such as Volkswagen, Siemens, and Deutsche Bank could experience price swings depending on the election results and potential shifts in government policy.

• Euro Pairs

Currency pairs like EUR/USD and EUR/GBP may react to exit polls and coalition negotiations as markets assess the potential impact on Germany’s economy and EU policy.

The broker advises its clients to stay prepared by:

• Ensuring their accounts are funded ahead of the election.
• Using risk management strategies to navigate potential volatility.
• Staying alert for market shifts and trading opportunities.