MUFG Research highlights the importance of the German elections polls over the coming 4 weeks ahead of the German General Elections.
"Tomorrow will mark the 1-month point to the general election in Germany with a new Chancellor guaranteed given Angela Merkel is stepping down...While it might not be a market-mover for FX in and around the election itself, who leads Germany is still of crucial importance. The latest polls also suggest greater uncertainty over who wins as well," MUFG notes.
"The main risk of the election having an influence on EUR would be from a very divided election result that increases concern over a period of political instability or a coalition and a leader that lacks authority. In that sense, the German election polls over the coming weeks should be monitored closely," MUFG adds.