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EUR/USD slides to fresh 17-month lows near 1.1160

FXStreet links the move mainly to selloff pressure in French government bonds, which has tightened euro area financial conditions via widening spreads versus German Bunds.

Reported · Written up by our desk · Major Pairs

EUR/USD has fallen to fresh 17-month lows around 1.1160 as political and fiscal uncertainties across the eurozone intensify, FXStreet reports.

The outlet says market focus is less on Spain’s call for a snap election on November 29 and more on the deepening French budget crisis and its spillover into European sovereign bond markets.

FXStreet adds that widening yield spreads against German Bunds have tightened financial conditions and complicated the path for potential European Central Bank intervention, helping the US dollar draw support.

MUFG’s Lee Hardman, as cited by FXStreet, says strategists are watching whether technical support near 1.1200 and 1.1111 can hold or whether eurozone fiscal contagion could drive EUR/USD lower.

Latest closeEUR/USD 1.122 ▼0.3%

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