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Euro holds near 1.1215 as France debt fears cap upside
EUR/USD stays around 1.1215 in early Asian trade, with analysts pointing to stress in French versus German 10-year yields after a big weekly widening.
The euro held onto gains versus the dollar, trading near 1.1215 in early Asian hours on Friday, even as concerns over France’s debt situation kept the pair’s upside in check, FXStreet reported.
The outlet tied the cautious EUR outlook to the spread between French and German 10-year bond yields, which widened sharply last week as traders shifted from French bonds into safer German bunds, amid worries about France’s ability to rein in its budget deficit after a sharp selloff.
France’s government, according to FXStreet, outlined plans last month for a 54 billion euro savings drive intended to help avoid a catastrophic downgrade or sovereign default, while the Michigan Consumer Sentiment Index for October is set to be released later on Friday.
FXStreet also noted that the FOMC minutes showed policymakers were divided in September on the rationale for lifting interest rates, a backdrop that may influence broader dollar direction alongside the euro’s France-driven risk premium.