Euro Stays Resilient Amid ECB Leadership Succession Speculation

The Euro remains resilient due to steady composite PMI readings and improving signs in German demand. This is despite growing speculation over ECB leadership succession, with President Christine Lagarde's tenure potentially being cut short. German Chancellor Friedrich Merz is set to meet ECB officials next week ahead of the bank's rate decision, where he will discuss Germany's improving economic outlook.

The meeting comes amid rumors that Merz may be considered as a potential successor to Lagarde, who may not complete her term due to run until October 2027. However, securing the role could prove difficult given that German officials already occupy several senior European posts.

Meanwhile, Eurozone assets remain supported by steady composite PMI readings and improving signs in German demand. The services PMI eased slightly to 51.6 from 51.7, while manufacturing momentum strengthened, helping keep overall activity firm.