EUR/USD Slumps on French Debt Concerns Amid US Jobs Report

The EUR/USD has reached fresh year-to-date lows due to concerns over French public finances and subsequent government bond sell-offs. The US jobs report, expected to show resilient activity with 85,000-90,000 new jobs, elevated energy prices, and hawkish Fed bets will keep the greenback supported.

The euro faces a different problem, with little prospect of meaningful fiscal consolidation in France leaving its debt vulnerable to further pressure. This complicates the ECB's policy balance between monetary tightening and stabilizing bond markets.