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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Trading volatility: German CPI

Inflation data continues to be a thorn in the side of central banks around the world, and, for this reason, German consumer prices on Wednesday 29 May are a target.

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While the number may be benign, there is a technical trade on the Dax, focussing on the recent declines. IGTV’s Jeremy Naylor looks at Fibonacci support which should be the price target on a short trade.

(AI Video Summary)

Germany's IFO Business Climate

Next week's financial focus is on Germany, where trading volatility may spike due to key economic reports. Tuesday's German IFO Business Climate report and Wednesday's release of inflation data are crucial. Early data indicates a slowdown in inflation across several German states, likely keeping the national figure below the ECB's target, supporting ongoing stimulus efforts amid the pandemic.

German bank stocks

Additionally, German banks may continue to show recovery but remain fragile. Investors are advised to monitor support levels, particularly with an eye on upcoming consumer price index (CPI) data and its implications for German banking stocks. Fibonacci retracement and moving averages provide technical guidance for potential support levels and price targets, particularly if betting against German bank stocks.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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