Euro is choppy this morning as German construction figures showed the third drop in as many months, reaching the lowest level since last October. Nonetheless, future expectations remain positive, with interest rates expected to remain low and demand high.
The nomination of Christine Lagarde for the post of President of the European Central Bank surprised many, and concerns are still being raised about someone with no experience of leading central bank policy taking on the position. However, perhaps her political experience could prove useful in dealing with Italy, whose budgetary dispute with the EU continues. The markets were choppy after the announcement, as the expectations would be that she would continue Draghi’s policies, rather than ‘rocking the boat’. The nomination is expected to be concerned in a few weeks.
