Forex News: Euro Falls Amid Ongoing French Political Concerns

Euro Falls Amid Ongoing French Political Concerns

(RTTNews) - The euro weakened against other major currencies in the European session on Monday, as investors in Europe remain cautious, as they await word from France's new administration.

Investors focus is still on France, where Sébastien Lecornu was reappointed as prime minister by President Emmanuel Macron a week after he resigned. Roland Lescure, a close ally of Macron, has been appointed Finance Minister by Lecornu. His difficult challenge will be to get a budget that tightens the belt through the parliament.

Also, the U.S. government shutdown entered its third week. Markets fell across the board even as U.S. President Donald Trump posted conciliatory message about China tariffs on Truth Social after threatening a 100 percent tariff.

Investors also fear that the US-China trade dispute could turn into a trade war.

As economic worries mount, investors also awaited corporate earnings reports from prominent U.S. companies and guidance from the U.S. Federal Reserve.

Political and fiscal developments in Japan and Europe also kept investors on edge. Many world leaders, including Trump, are due to meet in Egypt today to discuss ceasefire plans for Gaza.

In economic news, data from Destatis showed that Germany's wholesale price inflation accelerated in September. Wholesale selling prices increased 1.2 percent year-on-year in September. This followed a 0.7 percent rise in August and a 0.5 percent increase in July.

On a monthly basis, wholesale prices moved up 0.2 percent, in contrast to the 0.6 percent decrease in August.

In the European trading today, the euro fell to a 4-day low of 0.8677 against the pound, from an early high of 0.8708. The euro may test support around the 0.85 region.

Against the yen, the U.S. dollar and the Swiss franc, the euro dropped to 175.93, 1.1566 and 0.9303 from early highs of 176.92, 1.1630 and 0.9318, respectively. If the euro extends its downtrend, it is likely to find support around 174.00 against the yen, 1.14 against the greenback and 0.92 against the franc.

Against Australia, the New Zealand and the Canadian dollars, the euro edged down to 1.7758, 2.0211 and 1.6201 from early highs of 1.7856, 2.0275 and 1.6273, respectively. On the downside, 1.74 against the aussie, 1.99 against the kiwi and 1.61 against the loonie are seen as the next support levels for the euro.

Looking ahead, U.S. Consumer Board's employment trends index for September, U.S. construction spending and wholesale trade sales data, both for August, are slated for release in the New York session.

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