Euro Weakens Sharply
The euro fell over 0.6% to $1.05 as political turmoil in France deepened concerns over the stability of the Eurozone.
France’s far-right party threatened to topple Prime Minister Michel Barnier’s fragile government in a no-confidence vote, escalating a standoff over the national budget.
Meanwhile, dovish comments from ECB official Martins Kazaks fueled speculation about further rate cuts, with markets increasingly factoring in a 50 basis point reduction in December, though a 25 basis point cut remains more likely.
Weak Eurozone growth, slowing services inflation, and fears of US tariffs have added to the euro’s struggles, culminating in a 3% drop in November, its worst monthly performance in over a year. Parity with the dollar is becoming a growing concern among investors.
Source: Trading Economics
