Market Outlook: Euro Climbs Despite Political Chaos in France

Forex - The Euro is rising despite the collapse of the French government, driven by a weakening dollar and ECB President Christine Lagarde's statement that the fight against inflation is not over. Swissquote Bank analyst Ipek Özkardeskaya noted that considering the uncertain outlook, the most cautious option for the ECB is to implement a 25 basis point rate cut this month instead of a 50 basis point reduction. Özkardeskaya stated, "The diminishing expectations for an ECB rate cut and the Euro's resilience against the chaos in France strengthen its support around $1.05 and should allow for further recovery." The Euro increased by 0.3% to $1.0547.