Dollar holds firm as French fiscal woes keep euro on back foot
Traders priced in a 78% chance the Federal Reserve holds rates steady this month as French debt concerns kept the euro near a May 2025 low.
- On Monday, the dollar hovered near a 17-month high as fiscal concerns in France weighed on the euro, which traded at $1.1246, near its lowest level since May 2025.
- Traders reduced bets on Federal Reserve rate hikes this month after Friday's US jobs data showed slower growth, with markets now pricing in a 78% chance of the Fed holding rates steady.
- Treasury yields remain elevated at 5.262%, driving safe-haven flows into the greenback, a move Matthew Ryan, head of market strategy at Ebury, called the "main winner in the current environment."
- Global markets continue to reel from last week's bond rout, which pummelled French debt, while The Australian dollar held steady at $0.6956 and the New Zealand dollar eased 0.1% to $0.5610.
- Jefferies strategist Mohit Kumar noted the firm's base case is for one rate hike each from the Fed and the European Central Bank, warning that if oil prices remain elevated, "we are talking slower growth" by March.
33 Articles
33 Articles
News of early elections in Spain is intensifying pressure on the single currency, while markets are concerned about political stability and France's finances.
The euro fell to its lowest level against the dollar since May 2025 on growing concerns about political instability and the state of public finances in the eurozone, Bloomberg reported. In Asian trading today, the single currency lost 0.8 percent to $ 1.1161 per euro, with hedge funds among the main sellers, BTA reported. Reports that representatives of the Spanish government are preparing for early elections have increased investor concerns, wh…
On Monday, the Euro recorded a sudden fall, reaching the lowest level in the last 17 months, due to the situation in France, according to experts, which warns that it could only be the beginning and that there is the possibility of extending the problems to other countries in the euro area. The correction of the single world came to the heart of France's tax concerns, ...
The euro is as bad as it hasn't been in over a year, and that has above all to do with the situation in France.
The euro declined at the beginning of today's Monday dealings to its lowest level in 17 months, affected by concerns about the French financial situation and a sharp selling wave in the bond market, while the dollar rose despite weak US job data.
Is France’s Debt Crisis Becoming a Problem for the Euro?
The euro has come under renewed pressure as concerns over France’s deteriorating public finances and political uncertainty increasingly spill into broader European markets. The common currency fell to a 17 month low on Monday, declining around 0.7% against the dollar as investors reacted to mounting concerns about France’s high debt levels and political gridlock ahead […]
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