EURUSD – Daily Chart
The price of EURUSD was bouncing at the 1.0450 level and has key resistance at the 1.06 mark. The bounce has been weak and could spell further losses ahead.
France’s government was facing a no-confidence vote on Wednesday that could mark the end of the short-lived administration of Prime Minister Michel Barnier, plunging the country into political and financial chaos.
Barnier is likely to be the first premier to be forced out by a no-confidence vote in more than 60 years at a time when his nation is struggling with a massive budget deficit.
The ECB President has said that France’s budget is “unsustainable” and Barnier’s tough measures were a last gasp attempt to tackle it. But unpopular measures such as raising the retirement age have not pleased French voters.
Barnier has only been in power since September and his financing bill includes €60 billion ($63 billion) worth of tax hikes and spending cuts. The coming weeks could add pressure to the euro as other issues such as depleted gas stores and the Ukraine conflict have added further stress to the single currency.
Economic data ahead includes eurozone retail sales at 6pm HKT on Thursday. German industrial production is released at 3pm HKT on Friday, with European GDP growth and employment at 6pm. US NFP payrolls data close out the week late in the Asian session.