The Euro weakened against the dollar!
According to traders, speculative funds in Asia sold euros and bought dollars.
The euro fell 0.8% against the dollar in Asian trading, reaching $1.1161. According to traders, speculative funds in Asia sold euros and bought dollars. These transactions pushed the currency below key support levels and accelerated the decline.
Political risks in Europe are also contributing to the euro’s weakness. In Spain, expectations of early elections have increased after parliament rejected two housing bills proposed by the minority government led by Prime Minister Pedro Sánchez. The government has reportedly struggled to pass legislation since taking office in 2023.
Political uncertainty in France is also worrying investors. Opposition parties have taken a tougher stance toward the government of President Emmanuel Macron. The risk premium on French bonds rose to 152 basis points, the highest level since 2011. Meanwhile, a stronger US dollar is putting additional pressure on the euro. The Bloomberg Dollar Spot Index reached its highest level since late June.