Euro Hits 17-Month Low Against Dollar Amid French Fiscal Crisis

Key Facts

1The EUR/USD pair fell to 1.1162, its lowest level in 17 months, driven by the fiscal crisis in France.

2US employment data showed only 29K jobs added in September, significantly missing the forecast of 84K.

The EUR/USD pair fell to 1.1162, marking its lowest level in 17 months, driven by the ongoing fiscal crisis in France. ActionForex reported that French financial instability is limiting the European Central Bank's policy options, while US employment data showed a mere 29K jobs added in September, significantly missing the forecasted 84K positions.

The decline follows France's presentation of a draft budget with a deficit of 5% of GDP, which has widened the yield spread between French and German bonds. Despite the cooling US labor market, the Dollar remained resilient against the Euro, even as eurozone inflation accelerated to a three-year high of 3.8% in September from 3.2% in the previous month.