The euro has been struggling today partly due to French political intrigue and the stalemate in parliament.
PM Barnier has now invoked special constitutional powers to pass the budget, something I warned he could do last week. Le Pen has taken the stance that the government won’t negotiate and warned of chaos if he makes this move.
Constitutional rules prevent a parliamentary election before 2025 and that seems inevitable. Macron could also face a Presidential election before his term ends.
The euro appears to be taking this headline in stride, as it was not out of the blue. It’s largely unmoved on the headline and down 75 pips to 1.0500 on the day.