{"id":15938,"date":"2024-12-03T03:13:03","date_gmt":"2024-12-03T03:13:03","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15938"},"modified":"2024-12-03T03:13:03","modified_gmt":"2024-12-03T03:13:03","slug":"eurusd-slides-as-french-political-unrest-grows","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/eurusd-slides-as-french-political-unrest-grows\/","title":{"rendered":"EURUSD Slides as French Political Unrest Grows"},"content":{"rendered":"\n<p><em>Listen to the article here:<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/12\/15938.mp3\"><\/audio><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Key points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EUR\/USD closed at 1.0489 as French political unrest eroded eurozone confidence.<\/li>\n\n\n\n<li>Analysts warn that EUR\/USD could approach parity in 2025, compounded by U.S. tariff risks and euro weakness.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The EUR\/USD pair started December on a bearish note, closing at a lower <strong>1.0489<\/strong> overnight. The French government\u2019s current grappling with a budget deadlock and broader eurozone struggles is further compounding the pair\u2019s weak stance within the G10 currency space.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">France\u2019s government risks collapse before the end of the week. Here&#39;s what to know about the potentially painful economic and financial consequences <a href=\"https:\/\/t.co\/Iy17NQAShj\">https:\/\/t.co\/Iy17NQAShj<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1863651978942820670?ref_src=twsrc%5Etfw\">December 2, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/12\/image-2-1024x446.jpeg\" alt=\"\" class=\"wp-image-15939\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: EUR\/USD edges lower amid bearish momentum, testing key support levels, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>From the charts, we see the key technical indicators suggesting <strong>further downward pressure<\/strong>, with the pair holding key resistance at <strong>1.050<\/strong>. Analysts expect the pair to test key support at 1.046 on the back of upcoming US Fed policies and a rising dollar.<\/p>\n\n\n\n<p>Traders should watch for a breakout below <strong>1.04600<\/strong> or a reversal above <strong>1.05015<\/strong> to determine the next major move.<\/p>\n\n\n\n<p>Market participants are bracing for a downside risk if <a href=\"https:\/\/www.reuters.com\/world\/europe\/whats-next-frances-political-budget-crises-2024-12-02\/\" title=\"\">France\u2019s government impasse<\/a> continues.<\/p>\n\n\n\n<p>Looking stateside, improved manufacturing data has further boosted the dollar&#8217;s strength. The Federal Reserve\u2019s <a href=\"https:\/\/t.co\/LCiHfpzG06\" title=\"\">hawkish stance<\/a> has only widened the chasm between both regions\u2019 economic trajectories, though its sustainability remains to be seen.<\/p>\n\n\n\n<p>All eyes are now turning to Friday\u2019s US employment data to clue in on the Fed\u2019s rate path for 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Tariff Tension<\/h2>\n\n\n\n<p>President-elect Donald Trump\u2019s <a href=\"https:\/\/t.co\/48UB6ZjDmF\" title=\"tariff threats\">tariff threats<\/a> remain a heavy cloud on the EURUSD. Countries looking to oppose the dollar\u2019s status as a reserve currency may be heading into choppy waters as the new year draws closer.<\/p>\n\n\n\n<p>The market anticipates that the dollar may hold its strength under the Trump administration, supported by trade measures rather than monetary easing.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">\u00a0start trading<\/a>\u00a0now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EUR\/USD stumbles due to France&#8217;s instability and strong U.S. data, with traders eyeing parity as the dollar gains on solid fundamentals. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,29,12],"class_list":["post-15938","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-euro","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15938"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15938\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}