EUR/USD, USD/JPY flows - Lower French Yields Help EUR

  This is more a rebound in the EUR from depressed levels looking at EUR/JPY and EUR/CHF as well and USD/JPY has just been choppy. The 10yr French-German government bond spreads is into 146bps and 10yr absolute French yields are down 20bps from the highs on hopes that the 2027 will see support from the National Rally (here). However, this will not be a straightforward process and the National Rally will likely ask for some of their politically sensitive expenditure cuts, which could led to disagreement when the debate starts in earnest on October 13. 

Though 10yr U.S. Treasury yields are down around 3bps, this is small compared to the September selloff. A deeper decline in yields would require a new catalyst before the USD took notice.