ECB Rate Decision Arrives as French Yields Hit 24-Year High

The ECB rate decision is widely expected to leave rates unchanged, while markets still price around an 84% chance of a December hike. Fiona Cincotta, StoneX Senior Market Analyst, explains how rising inflation, a French bond selloff, and surging energy costs are shaping the backdrop for the European Central Bank and the euro. Eurozone inflation rose to 3.8% in September as energy inflation surged on higher Brent crude and European natural gas prices, with core inflation also edging up. French bond yields climbed to their highest level in 24 years amid France's fiscal and political crisis, lifting borrowing costs and tightening financial conditions ahead of commentary from ECB President Christine Lagarde. The euro has trended lower against the U.S. dollar, reaching its lowest level since May 2025. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share 00:00 - ECB Decision Day as CPI Runs Hot 00:28 - Energy Jolts Eurozone Inflation 00:59 - French Bond Yields Rattle the ECB 01:58 - December ECB Hike Still in Play 03:43 - Euro Sinks to Its 2026 Lows 04:36 - Fed and ECB Hold the Euro's Fate Like and subscribe for more financial market insights. #ECB #StoneX #FionaCincotta #EURUSD #Forex --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social