ECB Chief’s Early Departure May Reduce Risks to Euro, Rabo Says

Christine Lagarde’s reported decision to step down early from the presidency of the European Central Bank could protect the euro’s value from threats to ECB independence, according to Jane Foley, head of FX strategy at Rabobank.

An early exit would prevent France’s National Rally party from playing a role in the selection of Lagarde’s successor should its candidate win the presidential election in spring 2027. The party, which is riding in high in public opinion polls, has called for the ECB to buy French government debt, which Foley sees as inflationary and damaging to the euro by undermining the ECB’s credibility.