EUR/USD

Commerzbank’s Thu Lan Nguyen argues that growing concerns over France’s public debt sustainability are now weighing on the Euro (EUR), after previously leaving the currency largely untouched despite bond market turmoil.

The EUR/USD pair comes under intense selling pressure on Monday, breaking below the 1.1200 mark and hitting a fresh low since May 2025 during the Asian session.

• Rising US Treasury yields and sovereign spreads drove EURUSD sell-off. • Eurozone growth challenges and cautious ECB stance pressure the euro. • Technical indicators show MACD sell signal and oversold conditions.

The EUR/USD pair loses momentum to around 1.1245 during the early Asian session on Monday. The Euro (EUR) weakens against the US Dollar (USD) amid fears over France's shaky fiscal trajectory. The US ISM Services Purchasing Managers Index (PMI) report is due later on Monday.

EUR/USD rebounds to around 1.1260 on Friday, gaining 0.16% on the day at the time of writing, after hitting an intraday low of 1.1221 earlier in the day.

Standard Chartered Global Research team discusses Euro area monetary policy, noting that core inflation has only edged up slightly since January and that higher yields pose downside risks to both growth and inflation. The authors judge that these factors reduce the chances of an October rate hike and expect the Governing Council to wait for new macroeconomic projections at the December policy meeting.