Forex
EUR/USD Tumbles to 15-Month Low Amid French Fiscal Risks and Rising Yields
The EUR/USD pair has plummeted to a 15-month low due to rising Treasury yields and concerns over France's upcoming budget, despite stronger-than-expected eurozone manufacturing PMI data.
France's 10-year OAT yield surged 4.9% on Thursday to its highest level since June 2002, ahead of the government's budget announcement.
The government is set to unveil a €54 billion fiscal consolidation plan aimed at reducing the budget deficit to 5% of GDP in 2027, but the market remains unconvinced.
In contrast, the U.S. dollar is rising on safe-haven flows amid risk-off trade in Europe and as U.S. Treasury yields remain elevated.