EUR/USD, EUR/JPY flows - EUR Weakness as French Bonds Fail to Bounce
2
USD is trading sideways against USD/JPY and Cable, but has gained against the EUR.
Some slippage of the EUR against USD and crosses into NY trading, as the 10yr France-Germany government bond spread is wider again today. End investors will likely be reluctant to buy at current spreads until they can be confident that the National Rally will support the 2027 budget and next week could see some volatile negotiations. Failure could trigger older investors to offload some French bonds! Despite optimism in France over 2027 budget passage, the bond spread could leave the EUR on the soft side into next week. The charts suggest a bias to test 1.1161 on EUR/USD and then down to 1.1100.