Euro's Medium-Term Prospects Could Improve After German Election -- Market Talk

Dow Jones
Feb 25, 2025

0914 GMT - The euro retraces initial gains after Germany's election but it has scope to strengthen on a more sustained basis over the medium term, MUFG Bank analyst Derek Halpenny says in a note. Negotiations for forming a potential coalition between the CDU-CSU alliance and Social Democratic Party $(SPD.AU)$ could be relatively straightforward and completed by Easter, he says. This coalition has greater scope to deliver policy changes than under the "gridlock of the SPD-led three-party coalition that was rife with division." The change in government paves the way for economic policies that could boost optimism over the growth outlook and prove euro supportive. The euro trades flat at $1.0468 after hitting a four-week high of $1.0531 Monday, according to FactSet. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

February 25, 2025 04:14 ET (09:14 GMT)

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