FX.co ★ Euro Slips to Two-Week Low as France’s PM Resigns

On Monday, the euro experienced a decline of over 0.5%, dipping below $1.167 — marking its lowest point since September 25. This downturn occurred after reports emerged that France’s new prime minister, Sébastien Lecornu, had resigned. Lecornu's departure came shortly after President Emmanuel Macron opted to maintain a largely unchanged cabinet, a decision that quickly attracted criticism from opposition parties. Having assumed the role less than a month ago, Lecornu was facing the formidable task of guiding a budget through a parliament that is deeply divided. The anticipated fiscal plan is expected to propose unpopular measures such as spending cuts and tax increases aimed at reducing France’s deficit, which is the largest in the eurozone. These developments have further escalated political tensions and heightened investor concerns.