Euro Slumps to 4-Month Low Amid Oil Price Surge and Debt Woes
The Euro (EUR) has plummeted to its lowest levels since May 2025 against the US Dollar (USD), hitting 1.1265 on Thursday after four consecutive days of losses.
The combination of rising oil prices, surging US Treasury yields, and concerns over France's government debt have weighed heavily on the Euro, causing a 2.8% decline in just four weeks.
Despite an upward revision to the Euro Area's manufacturing activity figures, which showed a rise in new orders and improved employment and purchasing activity, investors remain pessimistic due to Brent Oil prices exceeding $100 and France's public debt reaching its highest level since 1946.
The US Treasury yields have also reached fresh 24-year highs above 5.30 on the benchmark 10-year note, offsetting softer-than-expected US Personal Consumption Expenditures (PCE) price index data.