AfD Might Win Two German State Elections, Saxony and Brandenburg, on September 1

Mike “Mish” Shedlock's Sitka Pacific Capital Management,Llc

State elections in the German states of Brandenburg and Saxony are on September 1. AfD could win both of them.

The anti-immigration, anti-euro AfD party took the lead in Brandenburg in three of the last five polls in Brandenburg and is within striking distance in Saxony.

Brandenburg Polls

Saxony Polls

CDU pulled ahead in the tow most recent polls but with so many parties in play, the results are within the margin of error of an AfD win.

The Local asks Could the far-right AfD really win in upcoming German state elections?

All eyes are on eastern Germany as elections take place in Saxony and Brandenburg on Sunday, September 1st.

And, for the first time in German history, the Alternative for Germany (AfD) could win in state elections – and make it extremely difficult for the established parties to form a government.

The elections will also send shockwaves to Berlin where the so-called grand coalition between Angela Merkel’s Christian Democrats (CDU/CSU) and the centre-left Social Democrats (SPD) is already on shaky grounds.

Brandenburg's government is currently run by a coalition between the SPD and The Left, who have governed together since 2009, with Dietmar Woidke from the Social Democrats as state premier.

Parties have said they will not work with the AfD, so after the vote they will be scrambling around to try and form a coalition that would stop the group from coming to power.

The AfD in Brandenburg is making waves over their use of campaign posters – not for the first time. For this election, the slogan is "Wende 2.0". Wende (turnaround) describes the period of political change when the Berlin Wall fell and Germany was reunified. Many have slammed the party for appropriating German history for their own gain.

With slogans such as "Vollende die Wende" (complete the turnaround), the party is implying that if voters opt for them, they can finish the work of those who led the Peaceful Revolution.

The AfD has also been slammed for displaying former SPD Chancellor Willy Brandt on its electoral campaign posters.

The posters show Brandt captioned with his quote: "Dare to be more democratic!" Underneath the caption is the AfD's logo alongside "Vote for the AfD!" and "We're writing history!"

Choking on More Europe

Even Germany is choking on more Europe.

It't going to take a strange coalition to form a majority after the next election.

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.