FX.co ★ Euro Falls to Six-Week Low on French Turmoil, Weak German Data

The euro continued its descent, approaching the $1.16 threshold and reaching its weakest point since August 27. This slump is fueled by escalating political unrest in France and lackluster economic data from Germany, unsettling investors. French President Emmanuel Macron is under increasing pressure to either call for early parliamentary elections or step down, following the unexpected resignation of Prime Minister Sébastien Lecornu on Monday. Former allies have joined opposition leaders in urging decisive measures to address the intensifying political crisis in the EU’s second-largest economy. Concurrently, German industrial production plummeted by 4.3% in August compared to the previous month, marking the most significant decline since March 2022. This drop far surpassed the anticipated 1% decrease, predominantly due to a substantial downturn in the automotive sector.