Institution: Lagarde's potential resignation could be positive for the Euro.
In a report, Jane Foley of Rabobank stated that if European Central Bank President Christine Lagarde were to resign before the end of her term, it could have a positive impact on the euro. Reports suggest that Lagarde hopes to step down before the French presidential election in April 2027, so that French President Macron can participate in choosing her successor. Recent polls indicate that the far-right National Rally party is likely to win the election. Foley mentioned that if the party's leader, Yannick Bardeleix, wants the ECB to purchase French government bonds, it could trigger inflation and potentially harm the ECB's credibility. Lagarde's early departure could "eliminate the potential downward pressure on the euro", but a Eurosceptic French president could still pose risks.
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