Euro slumps as newly appointed French prime minister Lecornu hands in resignation

The euro is quickly knocked down on the headlines here, with EUR/USD falling by 0.6% now to 1.1665 on the day. EUR/GBP has also dropped by 0.3% to 0.8680 as French political woes are weighing on the currency. At the same time, French stocks have deepened losses as well with the CAC 40 index now down 1.7% on the day.

Newly appointed French prime minister Lecornu was immediately under pressure on the weekend as he struggled to get his fiscal affairs in order. There were concerns about having to get backing on the budget in order to address the growing deficit issue for Europe’s second biggest economy. And evidently, that is proving too hot to handle as the game of musical chairs continue.

The fall in EUR/USD is still largely contained from a technical perspective but the 100-day moving average isn’t too far away at 1.1620. And that will be a key line in the sand in holding up the pair since its push higher from March until September.