EUR/USD steady as Eurozone data point to recovery - BBH

The Euro remains range-bound near 1.1630 as upbeat German data offset political noise from France, where Moody's outlook cut and parliamentary tensions highlight lingering fiscal and governance risks, BBH FX analysts report.

Germany's IFO beats expectations, lifting growth sentiment

"EUR/USD is range-bound around 1.1630. Germany's IFO business expectation index improves more than expected in October to 91.6 (consensus: 90.0) vs. 89.8 in September indicative of an ongoing recovery in Eurozone economic activity. Bottom line: the bar for more ECB easing is high, which is EUR supportive."

"On Friday, Moody's Ratings cut France's credit outlook to negative due to the nation's political instability while retaining its Aa3 rating. As if on cue, French lawmakers delayed to later this week a vote on a Socialist proposal for a wealth tax."

"Socialist party leader Olivier Faure warned he would seek to topple the government if their tax demands are not met. This is largely political brinkmanship. Ultimately, France's parliament will pass the 2026 budget, as the Socialists cannot risk fresh election while polling poorly."