The euro slipped toward $1.12, hovering near multi‑month lows as mounting unrest in France intensified concerns over the country’s fiscal trajectory, while strains between Ukraine and the United States added to geopolitical uncertainty. Demonstrations across French cities have escalated into clashes with police, potentially complicating plans to implement austerity measures ahead of the 2027 elections and further eroding investor confidence.
At the same time, Ukrainian President Volodymyr Zelenskyy accused US President Donald Trump of pressuring Kyiv to make concessions to Russia, deepening an already widening diplomatic rift. Rising geopolitical risks across Europe, together with elevated energy costs and persistent worries about economic growth, continue to weigh on the single currency.
On the monetary policy front, both the European Central Bank and the Federal Reserve are expected to leave interest rates unchanged later this month, although markets are still pricing in the possibility of rate hikes in December.
