13.10.202506:41:33UTC+00Euro Steady Near Two-Month Low as France Faces Political Strain

The euro remained around $1.16, close to its over two-month low of $1.154 reached last Thursday, as investors evaluated the political uncertainty in France alongside ongoing US-China trade tensions. In France, Sebastien Lecornu, the nation's fifth prime minister in two years, resigned last Monday only to be reappointed by Friday. He is scheduled to present a draft budget bill today, navigating a challenging political landscape as he attempts to secure its approval in parliament. Lecornu is working to convince both the Socialists and the center-right Republicans to either abstain or provide conditional support for the budget vote. Positively, most deputies are opposed to dissolving parliament, indicating a possible path to passing the budget. Meanwhile, in the United States, President Trump adopted a more conciliatory stance towards China on Sunday, shortly after threatening 100% tariffs on Chinese imports following Beijing's decision to tighten export controls on rare earths.