EURUSD – Weekly Chart
The EURUSD is poised above support on the weekly chart but a strong rebound is needed to avoid a potential downturn to much lower levels.
Macron named Francois Bayrou as his new PM to run his government on Friday after his previous choice for the role served the shortest term in modern French history.
Macron appointed Bayrou after Michael Barnier was thrown out last week in a no-confidence vote in France’s National Assembly. The move was forced after parties clashed over the proposed budget.
Investors will be curious about what can change with the troubled budget and the euro may remain under pressure. Bayrou is now Macron’s fourth prime minister in a year as the nation faces turmoil.
French voters have been unhappy at measures, such as raising the retirement age and rival parties wanted to see more support for struggling families in areas such as energy prices. The opposition leader Marine Le Pen urged him to “do what his predecessor didn’t want to do” and pass a “reasonable” budget.
“Any other approach would only be a continuation of Macronism, twice rejected at the ballot box, could only lead to impasse and failure,” she posted on X.
France now has a budget deficit of about 6% of GDP, which is over twice the limit permitted by European Union spending rules.
Monday brings a speech from Christine Lagarde, ECB President, at 3pm HKT. That will be followed by French and German data with services and manufacturing at around 4:15 pm and 4:30pm. The same data will be released for the United States overnight ahead of the Tuesday session.
Nato’s leader has said that European governments should return to a “war mindset” and divert money from health and other areas to defense. That will be hard as the region remains strapped for cash.
In the US incoming President Donald Trump has talked about a series of drone sightings in the country.
“Mystery sightings all over the country. Can this really be happening without our government’s knowledge? I don’t think so! Let the public know, and now. Otherwise, shoot them down!!!,” Trump wrote on his social media platform.