EUR/USD Price Forecast: Euro Continues to Plunge on France Worries

From Daily Forex, this is Christopher Lewis taking a look at the euro against the US dollar. The euro has plunged again against the US dollar as interest rates in the United States continue to climb. Quite frankly, one of the biggest problems we have isn't even shown on this chart. It's the French 10-year yields, which are up for the day. And while that typically would be positive for a currency, it's not when there are concerns about fiscal spending in the country. It's not an inflation thing. It's not a central bank are going to tighten type of situation. It is concerned about French debt. That is a major problem. In fact, the differential between France and Germany right now on the 10-year is something like 1.4% which is pretty wide. So, with that being said, the euro continues to suffer as the second largest economy in that world continues to drag it down. Short-term rallies for me are selling opportunities have been for a while. And at this point, I don't really see much stopping us from going to the 1.11 level, unless of course the French come up with some type of plan. But the problem is getting the budgets through parliament. Marine Le Pin has released a fairly constrained budget that she wants to put through parliament, but right now uh the parliament doesn't look likely to do that. And then of course there are concerns about the 2027 French elections. So it's all France's fault at least today. Rallies at this point I think continue to offer cheap US dollars, especially if we could somehow get to the 1.14 level. But the way this chart looks, I think 1.13 is probably a little bit of a stretch at this juncture.