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Euro slips below 1.1250 as France debt worries pressure EUR/USD

FXStreet said EUR/USD traded around 1.1220 in early Asian hours, near a 17 month low as concerns grew over France’s rising debt costs.

Reported · Written up by our desk · Major Pairs

FXStreet reported that EUR/USD fell to around 1.1220 during early Asian trading on Tuesday, pushing the euro toward a 17 month low versus the US dollar.

The outlet linked the move to growing market concern about France’s debt situation, after French Prime Minister Sébastien Lecornu’s minority government outlined plans for a €54 billion savings drive.

FXStreet also cited details of the plan, including a target to narrow the budget deficit from 5.5% of GDP this year to 5.0% next year, with a warning that the deficit gap could reach 6.5% without action.

The report further pointed to pressure on the euro from rising French debt costs ahead of next year’s presidential election, and said political turmoil in Spain could add downside risk for the shared currency.

Latest closeEUR/USD 1.122 ▼0.3%

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