EUR/USD Drops Near 1.1700 as France Faces Political Uncertainty!
The EUR/USD pair fell close to 1.1700 on Tuesday as worries about a political crisis in France hurt the euro. The fall came after French Prime Minister Sébastien Lecornu resigned just hours after forming his new cabinet — the shortest term in French history. This sudden change created fear among investors and pushed the euro lower.
The pressure on the euro increased after Fitch Ratings recently cut France’s credit rating, and reports suggest that Moody’s could also downgrade it soon. These downgrades raise concerns about France’s economic and financial stability.
At the same time, the US Dollar is staying strong. Investors are waiting for the Federal Reserve’s next move, as many expect the Fed might cut interest rates in October or December because of weak US job data. Still, the dollar is benefiting from its safe-haven demand while global uncertainty continues.
Technically, EUR/USD is under selling pressure and traders are closely watching the 1.1700 support level. A break below this level could push the pair even lower.
Impact:
EUR/USD might stay weak in the short term if France’s political issues continue. But if US data worsens, the pair could bounce slightly in the coming days.