Observers of European Central Bank President Christine Lagarde are increasingly confident she will serve out her current mandate, dispelling recent speculation about an early departure.
The shift in sentiment comes after weeks of uncertainty regarding her political ambitions and potential candidacy in the French presidential election.
This reassurance is likely to stabilize euro-area rate expectations, which have been volatile amid fears of a leadership vacuum.
Traders who had been pricing in a higher probability of a successor appointment are now recalibrating toward a scenario of policy continuity through the end of Lagarde's term.
The reduction in succession risk removes a key source of uncertainty for eurozone monetary policy.
Lagarde previously declined to rule out leaving the ECB early, comments that fueled market jitters and prompted discussions about potential successors.