Euro Weakens Amid French Fiscal Concerns
The euro remained under pressure around $1.122, as rising French borrowing costs and worsening tensions between the US and Europe over Russia’s war in Ukraine weighed on sentiment. France’s 10-year OAT yield climbed above 5%, its highest level since 2002, reflecting mounting concerns over France’s public finances and social unrest. Meanwhile, relations between Washington and European allies have deteriorated as US President Donald Trump deepens his engagement with Russian President Vladimir Putin. Recent moves, including easing sanctions on Moscow and questioning Ukraine’s political leadership, have heightened uncertainty over Western unity and future support for Kyiv. Elsewhere, rising oil prices amid the ongoing Iran war have intensified inflation concerns and increased expectations of tighter monetary policy, weighing on Europe’s growth outlook. Political uncertainty ahead of key elections across major European economies has added to the pressure on the single currency.
The euro remained under pressure around $1.122, as rising French borrowing costs and worsening tensions between the US and Europe over Russia’s war in Ukraine weighed on sentiment. France’s 10-year OAT yield climbed above 5%, its highest level since 2002, reflecting mounting concerns over France’s public finances and social unrest. Meanwhile, relations between Washington and European allies have deteriorated as US President Donald Trump deepens his engagement with Russian President Vladimir Putin. Recent moves, including easing sanctions on Moscow and questioning Ukraine’s political leadership, have heightened uncertainty over Western unity and future support for Kyiv.
Elsewhere, rising oil prices amid the ongoing Iran war have intensified inflation concerns and increased expectations of tighter monetary policy, weighing on Europe’s growth outlook. Political uncertainty ahead of key elections across major European economies has added to the pressure on the single currency.