09.09.202507:20:13UTC+00Euro Steady as French Government Collapses, ECB Meeting Looms

The euro remains strong, maintaining a position above $1.17, marking its highest level since late July. This follows the anticipated ousting of French Prime Minister François Bayrou in a confidence vote, which resulted in the collapse of his minority government and exacerbated France’s political turmoil. President Emmanuel Macron is now tasked with appointing his third prime minister within a year. Meanwhile, all eyes are on the European Central Bank's upcoming meeting on Thursday, where policymakers are expected to keep interest rates steady for the second time in a row, despite ongoing trade uncertainties and consistent eurozone inflation that has hit target levels for three months in succession. In the United States, focus shifts to the forthcoming inflation report, as last week's weaker labor market data bolstered the argument for a potential Federal Reserve rate cut in September, with the market increasingly factoring in the likelihood of a more significant rate reduction.