The euro fell against the US dollar amid heightened volatility in global currency markets, with EUR/USD dropping to 1.1616, a 0.18% decline on the day.
Political uncertainty in France and fresh speculation about leadership changes at the US Federal Reserve put investors on edge as traders weighed the near-term outlook for the world’s most traded currency pair.
The selloff followed news of escalating unrest in France, where renewed government instability raised questions over eurozone resilience.
According to market analysis by TradingPedia, such political risks have historically undermined the euro’s safe-haven appeal, intensifying the risk-off mood and prompting investors to favour the US dollar.
Expectations of potential changes at the US Federal Reserve compounded this pressure on the single currency.
Earlier this week, President Trump unexpectedly removed Fed Governor Lisa Cook, stoking debate over central bank independence and sparking volatile trading sessions in the greenback.
Despite a brief morning rally that saw EUR/USD test resistance near 1.1705, buying momentum quickly faded as profit-taking set in.
Technical signals—including Relative Strength Index readings and Elliott Wave analysis—now point to further downside risk, with major support levels identified at 1.1545 and potential targets as low as 1.1475 should weakness persist.
“Today’s price action reflects uncertainty ahead of key US economic releases,” said market strategists. Upcoming PCE inflation and jobs reports remain in sharp focus as traders seek further clarity on the path of US interest rates and dollar strength.
Analysts predict that intraday swings may continue, with EUR/USD expected to remain choppy in the short term, depending on headline risks and economic data.
With the euro under pressure and market sentiment swinging, foreign exchange traders are advised to maintain caution and monitor breaking news and data releases closely in the coming days.
The post EUR/USD slips amid French political turmoil, Fed uncertainty appeared first on Invezz
