 Euro jumped notably higher following reports that Germany’s political leaders have reached a crucial agreement on the historic debt deal. According to sources close to the negotiations, Chancellor-in-waiting Friedrich Merz and the Greens have agreed on a massive increase in state borrowing, just days before a decisive parliamentary vote next week. While some details are still being finalized, the development marks a major step toward unlocking substantial funding for infrastructure, military expansion, and economic revival in Europe’s largest economy. Merz has been pushing for the outgoing German parliament to approve a EUR 500B infrastructure fund alongside sweeping reforms to borrowing rules that would provide greater fiscal flexibility for future investments. However, securing a two-thirds majority for constitutional changes requires support not only from his own conservative bloc and his likely coalition partner, the Social Democrats , but also from the Greens. With the Greens now onboard, the proposal has gained significant momentum, boosting confidence in Germany’s economic outlook and supporting Euro in currency markets. Overall for the week, Euro’s rally has helped it reclaim the top-performing spot, solidifying its strong positioning as trading nears a close. New Zealand Dollar has also performed well, buoyed by upbeat manufacturing data from New Zealand, which signaled faster-than-anticipated recovery. Meanwhile, British Pound has slipped to third place after UK GDP unexpectedly contracted in January.... |
