Dec 2 2024: The euro weakened on Monday as political uncertainty in France weighed on European markets, while the U.S. dollar strengthened ahead of key interest rate decisions. French Prime Minister Michel Barnier faces a Monday deadline to amend the budget or risk a no-confidence vote, with the far-right National Rally party signaling its likely support for such a motion.
The euro fell 0.57% to $1.0515, retreating from Friday’s highs, while French stock index futures indicated a 1.4% drop for the CAC 40. Analysts warned that a collapse of the French government could further pressure the euro, particularly against the Swiss franc.
Meanwhile, the dollar index rose 0.24% to 106.28, supported by President-elect Donald Trump’s warnings against BRICS nations reducing reliance on the greenback. Market focus remains on the Federal Reserve’s upcoming rate decision, with traders assigning a 66% probability of a quarter-point rate cut.
In Asia, Chinese stocks gained on strong manufacturing data, with mainland blue chips rising 0.6%. Cryptocurrencies saw mixed performance, with Bitcoin trading at $96,434 near record highs, and Ether climbing 2% to $3,674.44.
Gold declined 1% to $2,627.71, pressured by the dollar’s strength, while oil prices rose on robust Chinese factory activity and renewed Middle East tensions. Brent crude was up 0.8% at $72.41 per barrel, and U.S. crude increased 0.87% to $68.59.
