Euro at Risk of Further Losses on French Debt Concerns
Dow Jones
Oct 08
0743 GMT - The euro is likely to face further weakness in the near term due to concerns about France's fiscal position, Commerzbank's Thu Lan Nguyen says in a note. Ambitious plans to rein in public spending by far-right presidential candidate Marine Le Pen provided only temporary relief, she says. "One reason may be that she simultaneously called on the European Central Bank to intervene in order to give euro-area governments greater fiscal room for manoeuvre." Meanwhile, France's central bank chief Emmanuel Moulin said he doesn't think the ECB needs to intervene at this point. Against this backdrop, continued market nervousness appears justified, Nguyen says. The euro trades flat at $1.1190 after reaching a 16-month low of $1.1160 Monday, LSEG data show.
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