Analist: Fransa seçimlerinden sonra Euro'nun sıkıntısı devam edecek

Golden data on June 26th, analyst Mary Nicola stated that the past quarter was challenging for the euro. Although the upcoming elections may resolve some political uncertainties, the fate of the euro is unlikely to reverse. Signs of economic recovery stagnation have added to the woes of the euro. Germany’s IFO data further declined, and the entire region’s PMI data slowed in June. The ECB’s focus is on the rise in the service sector’s inflation rate, and with doubts about the economic recovery, concerns about stagflation may become more real. Conversely, if prices soften, the ECB could be more proactive in cutting interest rates, putting further pressure on the euro due to the widening interest rate differential. The election results are unlikely to quickly alleviate investor anxiety. Despite the French government’s commitment to respecting the trajectory of deficit reduction, its budget outlook remains under strict scrutiny. The new government cannot afford a mistake similar to former British Prime Minister Tras announcing a small budget in September 2022, which led to a significant sell-off of the pound and British government bonds.