Bearish
EUR/USD drops to 1.1161, lowest since May 2025, amid French fiscal concerns.
In the past 24 hours, EUR/USD declined to 1.1161, its lowest level since May 2025, driven by escalating concerns over France's fiscal stability and political uncertainties. The widening spread between French and German 10-year government bond yields, reaching 147 basis points—the widest since 2012—has intensified investor apprehension. Additionally, Spain's announcement of snap elections has further contributed to the euro's weakness.
Key points
- French-German 10-year bond yield spread widens to 147 basis points, the widest since 2012.
- Spain announces snap elections, adding to eurozone political uncertainties.
- U.S. non-farm payrolls report shows 29,000 jobs added, below expectations, leading to a slight easing in Federal Reserve rate hike expectations.
- European Central Bank signals a potential pause in rate hikes, with December more likely than October for the next increase.
Sources
- EUR/USD Falls to 1.1161, Lowest Since May 2025, as Dollar FirmsPippenguin.net · October 5, 2026
- Euro Is Wearing France’s Fiscal BillInvesting.com · October 5, 2026
- EUR/USD Slips as French Spread Hits 2011 High, Euro CPI at 3.8%Vantage Markets · October 5, 2026
- EUR/USD Falls as French Fiscal Risks MountFX Rate Updates · October 5, 2026
AI-generated from public news sources. Not financial advice.
