Euro dips on French turmoil, US dollar lifted as stocks rebound
SPY•The euro fell 0.24% to $1.1212 as unrest in France added to fiscal concerns, while the dollar index rose 0.17% to 101.97 as AI-related stocks rebounded. The Australian dollar gained 0.49% after China reported 4.5% annual growth in the third quarter.
1. Euro pressured by France
The euro fell against the dollar on Monday as riots in France added to concerns about the country’s worsening fiscal outlook. France’s central government asked some local authorities to impose curfews after weekend riots and looting connected to anti-government protests.
2. Dollar and other currencies
The dollar index rose 0.17% to 101.97 as AI-related stocks rebounded from last week’s sharp selloff. The euro fell 0.24% to $1.1212, while the Australian dollar rose 0.49% after China’s economy expanded at a 4.5% annual pace in the third quarter.
3. Rates and policy outlook
The spread between French and German government bonds widened to 147 basis points, its highest level since the 2011–2012 European debt crisis, from about 110 basis points in late September. Fed funds futures showed traders saw a 91% chance of a December rate hike, while the yen weakened 0.35% to 158.49 per dollar.
