Many recognize that German Chancellor Angela Merkel has been a strong leader for the eurozone, and key to many of the negotiations related to keeping the euro together during the recent sovereign debt crisis. So, what would happen if Merkel was no longer the German Chancellor?
While Angela Merkel is fairly popular in general, her ruling coalition might not be. This past weekend, her coalition suffered a defeat in Lower Saxony and there is speculation that the results of the national election, coming up in September, could mean the end to Merkel’s Chancellorship.
If the eurozone is truly past the sovereign debt crisis, a possible exit by Merkel might not have a very big impact on the euro. However, if more problems crop up down the road, the entire eurozone might be sorry that she is gone. Of course, this is just speculation. Merkel’s ruling coalition could do well in other states, and she could very well remain Chancellor.
For now, the euro is a little bit higher today against the US dollar and other major currencies. Trading is rangebound today, due in large part to the low volume resulting from US markets being closed.
At 15:54 GMT EUR/USD is up to 1.3313 from the open at 1.3310. EUR/GBP is up to 0.8406 from the open at 0.8398. EUR/JPY is down to 119.6750 from the open at 119.9200.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.