Euro Under Pressure as France Denies a Damaging Debt Spiral

The EUR/USD outlook stays under pressure as France's budget standoff lifts bond yields and Fed hike bets keep the U.S. dollar near an 18-month high. Fiona Cincotta, StoneX Senior Market Analyst, explains what is driving the euro's rebound from a 17-month low and the risks building around it. Eurozone inflation is expected to approach 4%, well above the European Central Bank's 2% target, and several policymakers have signaled another rate hike. Stress in the French government bond market could force the European Central Bank to prioritize financial stability instead. Federal Reserve hike expectations keep the U.S. dollar supported. 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 - Euro Bounces Off 17-Month Low 00:35 - France Budget Standoff Bites 01:50 - Eurozone Inflation Nears 4% 02:12 - French Bonds Box In the ECB 03:05 - Fed Hike Bets Prop Up Dollar 04:05 - EUR/USD Chart Leans Bearish Like and subscribe for more financial market insights. #EURUSD #StoneX #FionaCincotta #Forex #ECB --------- 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