Euro steadies as traders weigh France’s budget risks and Fed outlook
- EUR/USD holds modest gains during American trading hours as the US Dollar remains on the back foot.
- The Greenback faces pressure from declining Treasury yields, but expectations of further Fed tightening limit its losses.
- France’s budget uncertainty and concerns over slowing growth keep the Euro’s recovery in check.
EUR/USD holds modest gains during American trading hours on Tuesday as the US Dollar (USD) struggles to gain traction following its recent pullback. However, sentiment toward the Euro (EUR) remains fragile amid France’s fiscal and political troubles, limiting the pair’s upside. At the time of writing, the pair trades around 1.1223, up 0.10% on the day.
The Greenback remains under pressure as US Treasury yields retreat from their recent highs. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 101.76, down 0.23% on the day, after approaching 103 last week, its highest level since April 2025. Meanwhile, the benchmark 10-year US Treasury yield stands near 5.08%, down from around 5.36% earlier this month.
However, the downside in the US Dollar and US Treasury yields appears limited as heightened inflation risks stemming from rising energy costs reinforce expectations that the Fed could deliver another rate hike before year-end. West Texas Intermediate (WTI) Oil climbed toward $100 on Tuesday, reaching its highest level in more than a month as Houthi attacks on Saudi energy infrastructure and an increase in attacks on vessels in the Strait of Hormuz fuel concerns over supply disruptions.
Traders nevertheless expect the Fed to pause at its October 27-28 meeting following September’s 25-basis-point (bps) increase. A Reuters poll published on Tuesday shows 94 of 100 economists expect rates to remain at 3.75%-4.00% this month, while all respondents forecast an increase in December.
On the European side, calmer conditions in France offer some relief after authorities imposed curfews following widespread protests. However, attention remains on the country’s proposed 2027 budget and whether lawmakers can agree on measures to improve public finances.
On the monetary policy front, energy-driven inflation risks keep further European Central Bank (ECB) rate hikes on the table as inflation remains above its 2% target. The central bank has raised rates twice this year, and economists widely expect another increase in December after an October pause.
However, rising borrowing costs also pose risks to growth. ECB President Christine Lagarde said on Saturday, “While growth has been resilient, financing conditions have tightened.” Her comments underline the difficulty of tackling energy-driven inflation while protecting economic activity.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.18% | -0.66% | -0.39% | -0.50% | -0.32% | -0.45% | -0.51% | |
| EUR | 0.18% | -0.50% | -0.21% | -0.32% | -0.11% | -0.27% | -0.33% | |
| GBP | 0.66% | 0.50% | 0.30% | 0.18% | 0.40% | 0.26% | 0.16% | |
| JPY | 0.39% | 0.21% | -0.30% | -0.13% | 0.08% | -0.09% | -0.14% | |
| CAD | 0.50% | 0.32% | -0.18% | 0.13% | 0.20% | 0.05% | -0.02% | |
| AUD | 0.32% | 0.11% | -0.40% | -0.08% | -0.20% | -0.16% | -0.21% | |
| NZD | 0.45% | 0.27% | -0.26% | 0.09% | -0.05% | 0.16% | -0.06% | |
| CHF | 0.51% | 0.33% | -0.16% | 0.14% | 0.02% | 0.21% | 0.06% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
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