Euro Falls as French Fiscal Worries and Hawkish Fed Sentiment Dominate Markets

The EUR/USD pair weakened to around 1.1235 during Asian trading on Friday as investors reacted to mounting fiscal concerns in France.

French 10-year government bond yields retreated after touching their highest level since 2002, driven by worries over the country's fiscal trajectory and the impact of a prolonged US-Iran war on inflation pressures.

Dallas Fed President Lorie Logan called for at least 50 basis points of additional rate hikes to make policy 'modestly restrictive' and steer inflation back toward the Fed's 2% objective, reinforcing a hawkish Fed narrative that supports the US Dollar.