News of Christine Lagarde's Early Departure from the ECB Boosts the Euro

Reports that European Central Bank (ECB) President Christine Lagarde will leave her post early in February 2027 instead of October 2027 caused movement in global foreign exchange markets, and the euro rose against the dollar.

In global foreign exchange markets, reports that European Central Bank (ECB) President Christine Lagarde will leave her post early caused activity. The euro limited its intraday losses against the dollar and shifted upwards. Following news that Lagarde will leave her position in February 2027 instead of October 2027, an upward movement was observed in the EUR/USD parity. The parity rose to the 1.1138-1.1140 band in intraday trading, tested the 1.1143-1.1144 levels between 13:20 and 13:40, and gained approximately 0.04 percent on a daily basis.

Despite this limited intraday rise, the euro continues to trade near its lowest levels in 1.5 years against the dollar. The European common currency traded below 1.115 dollars ahead of the ECB's interest rate decision, remaining close to levels seen since April 2025. Investors focused on the European Central Bank's monetary policy decision alongside the news regarding Lagarde's term of office.