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EUR/USD gives back Tuesday rebound as French bond stress persists

Euro sentiment weakened near 1.1200 as French 10-year yields rose again, with EUR/USD tracking the French-German yield gap since late September.

Reported · Written up by our desk · Major Pairs

FXStreet reports that EUR/USD traded just below 1.1200 after giving back all of Tuesday's rebound, as renewed selling in French bonds pushed French 10-year yields higher.

Banque de France Governor Moulin said the strain in French bonds is serious but does not meet the conditions for European Central Bank help, leaving no backstop for euro holders.

FXStreet also noted that the extra yield on French debt has become a risk carried by holders of euro assets, and that EUR/USD has moved in line with the French-German gap since late September.

The outlet added that speculative traders held about 301K futures contracts betting on a weaker euro in the week to September 29, and that after netting off those bets, around 63K contracts remained short, the most since April 2025.

Latest closeEUR/USD 1.122 ▼0.3%

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