EUR/USD: French political risk weighs – OCBC

Euro (EUR) fell overnight. French PM Bayrou said he would call for a confidence vote on budget on 8 September in an effort to force political parties to take a position on the government’s budget proposals in parliament rather than through street protests planned for later that week. EUR was last at 1.1610 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Indicators are not showing a clear bias

"President Macron has allowed for parliament to return into session earlier in order to allow the government to present its plan and to hold the confidence motion. Last year, a no-confidence motion (although not on budget) saw the exit of former PM Barnier. This is one risk to watch for implication on EUR."

"Daily momentum and RSI indicators are not showing a clear bias. 2-way trades still likely. Support at 1.1570 levels. Resistance at 1.1730, 1.18 levels."