Euro Slips as Violent French Protests Shake Markets
The euro weakens against the dollar as violent protests in France spark market instability. Investors monitor fiscal concerns and upcoming US labor data.
POLICY WIRE — Paris, France — The U.S. dollar climbed from its monthly lows during Monday’s Asian trading session, buoyed by a weakening euro as civil unrest intensifies across France.
The common currency dipped 0.1% to $1.1225 as markets opened. This decline follows a broader retreat against most Group-of-10 peers, driven by mounting fiscal anxieties in France and escalating geopolitical tensions in Ukraine.
France is currently grappling with its most severe period of unrest in years, with approximately 550,000 demonstrators taking to the streets. The situation has turned increasingly violent, resulting in 2,400 arrests and reports of looting at Carrefour retail locations.
President Emmanuel Macron has publicly denounced the unbridled violence, pledging an uncompromising response to restore order. The EUR/USD pair had previously weakened to roughly 1.1235 during Friday’s Asian session as investors began pricing in the domestic instability.
Market participants are now weighing whether the current sell-off is overextended, given that sovereign risk is already reflected in bond pricing and hedge funds remain heavily short. Attention is shifting toward critical U.S. labor market data for September, which is expected to provide further direction for the dollar later today.
Reporting by Policy-Wire (PW)
