Euro dips further as French central bank chief warns the country risks being ‘strangled by interest rates’ – business live

AI desk brief

The euro extended its decline to near a 17-month low at $1.1206 as French debt fears and political uncertainty keep pressure on European assets; French 10-year spreads briefly blew out above 150bp before tightening to 136bp. The macro backdrop is mixed for metals: weaker euro/stronger dollar is a headwind, but softer-than-expected US jobs data has trimmed Fed hike expectations, even as US 10-year and 30-year Treasury yields hit fresh 24-year highs overnight.

French central bank governor Emmanuel Moulin warned France risks being “strangled by interest rates” unless it reins in its deficit, underscoring spillover risk from fiscal stress into eurozone funding conditions. The desk should watch whether renewed euro weakness and higher US yields overpower the softer Fed-rate outlook for XAU/XAG in the near term.