GER30 feels the inflation effect
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The DAX has run into resistance and is finding it difficult to overcome the 14,500 level. In this regard, we refer to FXCM's GEr30 CFD. The trend-following EMAs have crossed down (black ellipse), and the stochastic is heading towards its lower quintile (blue arrow). If it reaches and holds and the EMAs develop angle and separation, bearish will push the index down.
The resistance stems from the rapid increase in Eurozone inflation and the adjustment of the German bund. The longer-term correlation between bund yields, currently at 1.11% and the GER30 is -0.42. i.e. as interest rates adjust to the inflationary pressures, the stock market feels the pinch.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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