FX.co ★ Euro at Two-Week Low Amid French Political Turmoil

The euro's value dipped towards $1.167, reaching its lowest point since September 25. This decline is attributed to renewed political uncertainty in France and the ongoing U.S. government shutdown, which lacks new developments. In France, political tensions heightened when Prime Minister Sebastien Lecornu submitted his resignation on Monday. However, President Emmanuel Macron has requested him to continue negotiations in an attempt to resolve the political impasse by Wednesday evening. Current betting markets suggest nearly a 60% chance that early elections might be announced this month, though it remains uncertain if elections would effectively address the deadlock. On the economic front, German factory orders decreased by 0.8% in August, falling short of the anticipated 1.4% increase and marking the fourth consecutive monthly decline. Simultaneously, France's trade deficit narrowed less than expected, as stable export levels were counterbalanced by a more significant reduction in imports.