Created
: 2025.10.07
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
EUR/USD weakens to near 1.1700 on fears of French political crisis
World FX news
Breaking news
EUR/USD weakens to near 1.1700 on fears of French political crisis
New
2025.10.07 13:42
2025.10.07 13:42
2025.10.07 13:42
- EUR/USD drifts lower to near 1.1705 in Tuesday's Asian session.
- French PM resigned just hours after naming a new cabinet on Sunday, sparking fresh political chaos in France.
- The Fed is expected to deliver rate cuts in October and December.
The EUR/USD pair loses ground around 1.1705 during the Asian trading hours on Tuesday. The Euro (EUR) softens against the US Dollar (USD) after France's new Prime Minister Sebastien Lecornu and his government resigned on Monday, hours after announcing his cabinet line-up. The German August Factory Orders and French Trade Balance data are due later on Tuesday.
Sebastien Lecornu has resigned just weeks after his appointment, making it the shortest-lived administration in modern French history. This raises fear of a fresh political crisis in France and exerts some selling pressure on the Euro. Fitch downgraded France's ratings last month, and Moody's is widely anticipated to follow suit before the end of October.
Across the pond, the ongoing US government shutdown could raise concerns over the impact on the US economy, which might drag the Greenback lower and act as a tailwind for the major pair. The shutdown is leaving a void of US economic data, with last Friday's closely watched Nonfarm Payrolls (NFP) report for September delayed along with other key releases until the government reopens.
The Federal Reserve (Fed) is widely expected to cut rates by 25 basis points (bps) at its October meeting amid signs of a weakening labor market. Financial markets are now pricing in nearly an 83% chance of an additional Fed rate cut in December, according to the CME FedWatch Tool, though this will likely depend on data released before then.
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB's primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates - or the expectation of higher rates - will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB's 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone's economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.10.07
Related articles
Forex Today: US Dollar stabilizes as market focus shifts to comments from Fed officials
10 minutes agoGerman Factory Orders drop 0.8% MoM in August vs. +1.4% expected
2025.10.07 15:02Asian stocks advance as Nikkei 225 hits new record high
2025.10.07 15:00USD/CAD Price Forecast: Consolidates around 1.3950 ahead of Fed speaks
2025.10.07 14:57EUR/GBP stays near 0.8700, further downside appears due to political instability in France
2025.10.07 14:49AUD/JPY Price Forecast: Key upside barrier emerges near 100.00, eyes on overbought RSI
2025.10.07 14:34
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Forex Today: US Dollar stabilizes as market focus shifts to comments from Fed officials
Here is what you need to know on Tuesday, October 7:
New
2025.10.07 16:01WTI edges higher above $61.50 on OPEC+ output hike, geopolitical risks
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.80 during the early European trading hours on Tuesday.
New
2025.10.07 15:59Crude Oil price today: WTI price bullish at European opening
West Texas Intermediate (WTI) Oil price advances on Tuesday, early in the European session. WTI trades at $61.67 per barrel, up from Monday's close at $61.51.Brent Oil Exchange Rate (Brent crude) is also up, advancing from the $65.37 price posted on Monday, and trading at $65.56.
New
2025.10.07 15:04German Factory Orders drop 0.8% MoM in August vs. +1.4% expected
Germany's Factory Orders declined in August, suggesting that the country's manufacturing sector remained in contraction, according to the official data published by the Federal Statistics Office on Tuesday.
New
2025.10.07 15:02Asian stocks advance as Nikkei 225 hits new record high
Asian equities trades mostly higher on Tuesday in quiet holiday trading, while the Nikkei 225, Japan's benchmark, rose to a fresh record high on hope for more government spending and lower taxes under Japan's first woman prime minister.
New
2025.10.07 15:00USD/CAD Price Forecast: Consolidates around 1.3950 ahead of Fed speaks
The USD/CAD pair trades in a tight range around 1.3950 during the early European trading session on Tuesday. The Loonie pair consolidates as investors await speeches from a slew of Federal Reserve (Fed) officials scheduled in the North American.
New
2025.10.07 14:57EUR/GBP stays near 0.8700, further downside appears due to political instability in France
EUR/GBP stays silent after two days of losses, trading around 0.8690 during the Asian hours on Tuesday. The currency cross may further lose as the Euro (EUR) struggles after France's new Prime Minister Sebastien Lecornu and his government resigned on Monday.
New
2025.10.07 14:49AUD/JPY Price Forecast: Key upside barrier emerges near 100.00, eyes on overbought RSI
The AUD/JPY cross trades on a negative note near 99.45 during the early European session on Tuesday. The Japanese Yen (JPY) recovers slightly against the Australian Dollar (AUD) after reaching its lowest since November 2024.
New
2025.10.07 14:34FX option expiries for Oct 7 NY cut
FX option expiries for Oct 7 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
2025.10.07 14:20EUR/JPY trades firmly near 176.00 amid Japan-France political jolts
The EUR/JPY pair demonstrates strength near the all-time high around 176.00 during Tuesday's late Asian session, posted on Monday. The pair strengthens as the Japanese Yen (JPY) underperforms across the board since Sanae Takaichi has been elected as Prime Minister by Japan's ruling party.
New
2025.10.07 14:10Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
