Home Daily Commentaries Euro Gains as German Election Results Boost Stability

Euro Gains as German Election Results Boost Stability

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Monday 24 February, 2025

Daily Currency Update

The euro climbed to multi-week highs on Monday following a decisive victory for Germany’s opposition conservatives, led by Friedrich Merz, in the national election. The outcome, while expected, has fuelled optimism for political stability in Europe, supporting the single currency.

However, coalition negotiations could prove challenging, especially with the far-right Alternative for Germany (AfD), securing an unprecedented second place, adding uncertainty to Germany’s fiscal and trade policies.

Key Movers

Meanwhile, the US dollar weakened to its lowest level in over two months against a basket of currencies as investors grew increasingly concerned about the slowing US economy. Mounting worries over economic momentum could shift expectations toward Federal Reserve rate cuts, further weighing on the greenback.

Expected Ranges

  • GBP/USD: 1.2605 - 1.2685 ▲
  • GBP/EUR: 1.2035 - 1.2115 ▲
  • GBP/AUD: 1.9815 - 1.9895 ▲
  • EUR/USD: 1.0425 - 1.0515 ▲

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.

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