merkel depreciation euro

The euro suffers for Angela Merkel , but not the soverign debt

The Euro Suffers Because Of Angela Merkel, But Not Sovereign Debt

The market reaction to Angela Merkel’s decision has not been bad. The euro depreciated to 1.1373 against the dollar, but sovereign debt suffered more because of the greater risk appetite, and the returns on 10 years German bonds rose to +2.5 bp. However, given that Merkel has held the role of a stabilising figure in Europe, some analysts expect that the long term markets could be concerned by the vacuum she could create with her departure.