Germany snap election risks EUR/USD

Germany, Europe’s largest economy, is now under a caretaker government.

Chancellor Olaf Scholz lost a confidence vote in the Bundestag on Monday, paving the way for a snap election in February.

Key issues in the upcoming campaign are expected to include the war in Ukraine, the financial demands of strengthening Germany’s military, a struggling economy, immigration, and the growing influence of political extremes.

Amongst this turmoil, technical indicators possibly lack sufficient strength for a bullish confirmation. A break below 1.0460, a key support level, could open the door to a bearish move toward 1.0400.