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EUR/USD stays fragile as French debt volatility weighs on the euro

ING points to uncertainty around potential changes to France Treasury issuance duration, arguing that it could reduce pressure for fiscal consolidation.

Reported · Written up by our desk · Major Pairs

FXStreet summarized ING’s view that EUR/USD remains fragile, with French sovereign debt volatility acting as the key drag on the pair.

ING said a report that the French Treasury may shorten issuance duration unsettled investors, because it raises concerns that there could be less pressure on politicians to deliver fiscal consolidation.

The bank added that French fiscal debates are only expected to ramp up after mid-October, which it said leaves limited stability for French bonds in the near term.

ING continues to look for a dip in EUR/USD toward the 1.1100 to 1.1120 area, where it expects stronger technical support to emerge.

Latest closeEUR/USD 1.122 ▼0.3%

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