Published: 03/12/2024 By ECAP
The British Pound strengthened against the Euro yesterday due to growing political instability in France. As France faces a potential no-confidence vote in its government, concerns over its political turmoil and rising debt have created uncertainty in the Eurozone. This instability has led to increased demand for the Pound, pushing its value higher against the Euro as market attention shifts to the situation in France.The Euro declined significantly against its peers yesterday, marking its largest daily loss since early November. This drop was driven by political instability in France, where Prime Minister Michel Barnier's decision to bypass a parliamentary vote on the budget sparked strong opposition. Calls for a no-confidence motion against the government have created uncertainty, leading investors to react negatively. This political turmoil in France has contributed to the Euro's recent weakness.
The U.S. Dollar rallied during yesterday’s trading session, following tariff threats from President-Elect Donald Trump. In fact, Trump warned of imposing 100% tariffs on BRICS nations if they tried to establish a global reserve currency rivalling the greenback. Looking forward, the Job Openings and Labor Turnover survey, released later today, could influence the Dollar, with a weak report potentially diminishing its recent strength.
Data supplied by GC Partners