- The euro traded at $1.1206, down 0.13% and near a 17-month low against the dollar, extending last week's 1.2% drop on French debt fears and European political uncertainty.
- The French central bank chief said France is not Greece during the eurozone crisis, and that passing a budget to reduce spending and narrow the deficit will reassure markets about fiscal consolidation.
- French bond spreads tightened to 136bp from an intraday high above 150bp over the last two sessions, but the central bank chief flagged the risk of being gradually strangled by rising interest rates if France does not act.
Quotes
“If we don’t act, there is indeed a risk of being gradually strangled by rising interest rates.”
“France is not Greece during the eurozone crisis.”
“We have to remain masters of our own destiny.”