Home Business News Euro faces downward pressure ahead of French elections

The euro continues to face downward pressure against its major counterparts, weighed by ongoing political uncertainties in Europe, notably the upcoming French parliamentary elections.

Market participants closely monitor the situation, with particular attention on two leading factions: Marine Le Pen’s far-right National Rally (RN) and the leftist New Popular Front (NFP) alliance as concerns about the next steps in government policies could drive some volatility.

Political uncertainty could continue to push French treasury yields higher than their German counterpart.

On the data front, the euro may find near-term support, limiting its downside, as market participants are currently focusing on Thursday’s release of the Euro Area’s Economic Sentiment. It is anticipated to show a slight improvement in June, following the trend observed in May when the economic sentiment indicator for the Euro Area rose to 96 points, marking its highest level in four months.

This was up from 95.6 in April, but slightly below the anticipated 96.2 points. Looking ahead to next week, bond yields and the euro might remain capped if the Euro Area’s Manufacturing PMI for June reveals a softening manufacturing sector in line with market consensus.

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]