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French fiscal risk pressures EUR/USD near 1.1185 Fibonacci level

EUR/USD dipped to about 1.1160, its lowest since May 2025, before rebounding toward 1.12 as French political and fiscal concerns drove the move.

Reported · Written up by our desk · Major Pairs

EUR/USD fell to around 1.1160, its lowest level since May 2025, before recovering to about 1.12, with French fiscal and political risk identified as the dominant driver of the euro move, Action Forex reported.

The pair pierced the 1.1185 Fibonacci projection but had not yet confirmed a break, even as Fed hike expectations eased and French bond yields stabilized somewhat.

Action Forex said the move was not explained by interest rate differentials or a generalized Eurozone panic, and it highlighted Spain’s snap election on November 29 as an added headline without comparable market stress.

The outlet added that whether EUR/USD decisively loses 1.1185 will help determine if the broader decline from 1.2081 is developing into an impulsive medium term downtrend, with the leg from 1.1710 potentially entering its strongest phase.

Latest closeEUR/USD 1.126 ▼0.6%

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