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Feb 18, 2026
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WATCH
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Rumors are circulating that Lagarde may leave the ECB early, coinciding with French presidential elections where the "far right is riding high," creating anxiety about whether "we entrust the far right in France to have a say in picking the successor." Central Bank stability is a pillar of currency strength. If the ECB presidency becomes a political football in a volatile French election cycle, the uncertainty will likely force a risk premium onto the Euro and European assets. Investors typically sell the currency of regions undergoing leadership crises. WATCH. Monitor for confirmation of Lagarde's plans. If the rumor gains traction, it is a negative catalyst for the Euro and European equities due to governance uncertainty. The ECB has explicitly denied the report, and Lagarde has previously stated she is "not a quitter," meaning the status quo could easily remain. |
Bloomberg Markets
Lagarde to Step Down Early From ECB Position,...
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