Market Outlook: Political Concerns in France Weighing on Euro's Value

According to Ipek Ozkardeskaya from Swissquote Bank, political concerns in France are lowering the value of the Euro and keeping the spread between French and German government bond yields elevated. Ozkardeskaya argues that investors are worried that a newly formed French government will not receive enough support for a budget that would reduce the country's budget deficit. "As the French-German 10-year spread prepares to close the year at nearly 80 basis points, increasing deficits are generally not good news for the Euro," she stated. The Euro increased by 0.1% to 1.0419 USD, even as the DXY dollar index declined by 0.2%. The 10-year French-German bond yield spread is trading at 83 basis points.