EUR/USD: Markets price in renewed political stability in France – Scotiabank

FXStreetOct 16, 2025 2:26 PM

View all comments（0）



The Euro (EUR) is up a marginal 0.1% against the US Dollar (USD) and a mid-performer among the G10 currencies, quietly consolidating in the mid/upper-1.16s as market participants focus on political developments in France and the prospect of renewed stability, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR is marginally up

"France/Germany yield spreads are steady, reflecting PM Lecornu’s success in passing the first of two no-confidence votes scheduled for today."

"Sentiment continues to dominate as the EUR remains tightly correlated to risk reversals, which are once again pricing a slight premium for protection against EUR strength. Comments from the ECB continue to reinforce the central bank’s neutral stance on rates, confirming the market’s pricing of a policy hold through the end of the year."

"The RSI has recovered back to neutral levels around 50 and the EUR is attempting a break of the descending trend line drawn from the July lows. We remain neutral absent a break of the 50 day MA at 1.1691, and we see limited resistance ahead of 1.1750. We look to a near-term range bound between 1.1600 and 1.1700."

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

Micron Stock Price Forecast: $250 Billion Investment Plan Boosts Sentiment, Stock Price Expected to Rise to $1,400 in July

TradingKey - As of July 9 ET, Micron Technology (MU) was trading at $991.64, up 4.42% for the day, with an intraday high of $1,035.00. Benefiting from the company's announced plan to expand investment in the U.S., the price correction may be ending, signaling the start of a new rally.

Palantir (PLTR) Stock Forecast: Nvidia Partnership, Burry Covered, Trump Bought - Is the Bottom In?

Palantir surged 9% on July 1 after a Nvidia AI partnership, Burry trimming his short, and Trump disclosing a $1M+ PLTR stake. DA Davidson upgraded to Buy at $175. At $127 down 27% YTD, is the rotation beginning?

Broadcom (AVGO) Stock Price Forecast: Apple’s $30B US Chip Deal Confirmed - Buy at $404?

Apple confirmed a $30B+ multiyear Broadcom chip deal for 15 billion US-made chips, including a $1.5B Colorado facility expansion. AVGO at $404, defying a broad selloff driven by Trump declaring the Iran ceasefire over

Japan and South Korea Stocks Open Strong: SoftBank Surges 7% to Lead, SK Hynix, Samsung and Kioxia All Rally Over 4%

Both the Japanese and South Korean stock markets opened sharply higher, with the Nikkei 225 and the KOSPI index continuing to surge. SoftBank soared nearly 7%, while SK Hynix, Samsung Electronics, and Kioxia all rose by over 4%.

Tesla Optimus Gen 3 Design Initially Finalized, Musk Sets Hard Target for Supply Chain: 1,000 Units Weekly Production by September.

TradingKey - According to reports from LatePost, multiple sources within Tesla's supply chain have revealed that Tesla recently issued specific procurement guidance for Optimus parts to its suppliers. The company requested that production capacity be increased to 1,000 units per week by September of this year, and further raised to between 2,000 and 2,500 units per week by the end of the year. Based on the year-end weekly capacity estimate, suppliers will have the capability to supply parts for approximately 100,000 Optimus units annually to Tesla by the end of the year.

Featured Tools