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EUR/USD slips near 1.1195 as France fiscal worries weigh on euro

France’s borrowing costs have risen in a global bond rout, and traders fear the strain could spread beyond France to Europe.

Reported · Written up by our desk · Major Pairs

EUR/USD was slightly lower in early European trading on Thursday, edging down to around 1.1195, while market focus remained on euro-area fiscal concerns, according to FXStreet.

The outlet attributed the euro’s weakness against the US dollar to ongoing concerns about France’s public finances, noting that the country’s borrowing costs have climbed during a broader global bond rout and that traders are worried this could spill over to other parts of Europe.

FXStreet also pointed to upcoming US catalysts, with the US weekly Initial Jobless Claims report and Fed remarks due later on Thursday.

FXStreet cited commentary from Citadel’s head of Economic Research for Fixed Income and Macro, saying that a systemic problem tied to France would imply a wider problem for Europe, while Federal Reserve minutes showed policymakers were broadly aligned behind a September rate hike and many saw additional tightening as appropriate by year-end.

Latest closeEUR/USD 1.122 ▼0.3%

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