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.
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.
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