EUR/USD Stays Steady at 1.1710 – Traders Eye French Vote & ECB Decision
The Euro vs US Dollar (EUR/USD) is holding near 1.1710 in the Asian session. Traders are cautious ahead of a major political event in France. Prime Minister François Bayrou has called a confidence vote after heavy criticism of his €44 billion budget. Opposition parties are strongly against it, and left-wing leader Jean-Luc Mélenchon has even warned, “The government will fall.”
If the French government collapses, it could trigger early elections, adding pressure to the Eurozone economy, which is already struggling with global trade tensions and the ongoing Russia-Ukraine conflict.
This week, the focus is also on the European Central Bank (ECB) policy meeting. Analysts expect the ECB to keep interest rates unchanged, but traders in the forex market are watching closely for any signals about future moves.
On the US side, the dollar remains weak after Nonfarm Payrolls data showed slower job growth in August. This has kept the greenback under pressure in forex trading.
From a technical analysis view, EUR/USD is staying above the 20-day EMA near 1.1662, keeping a slightly bullish tone. But price action faces resistance around 1.1740. A breakout above this level could open the path toward 1.1830–1.1900, while a drop below 1.1583 may pull the pair down toward 1.1528 and 1.1392.
Impact:
The euro could gain if the ECB maintains stability and French politics calm down. However, any surprise from the vote might cause sharp forex volatility.
