CANBERA (dpa-AFX) - The euro weakened against other major currencies in the European session on Friday, due to growing budgetary concerns, French bond rates have surged to the highest level since 2002 at 4.96%.
According to an Associated Press (AP) article, France's state debt is currently 119% of GDP.
By 2029, France wants to cut its budget deficit from a target of 5% of GDP next year to the 3% EU cap. According to a Reuters article, France's Finance Minister (FM) Roland Lescure also unveiled the nation's 2027 budget bill on Thursday. Lescure claimed that the proposal will keep public finances back on track for budget reduction.
Market analysts, however, are skeptical that the French minority administration could approve the budget in Parliament without making any compromises.
In economic news, data from Eurostat showed that Eurozone inflation accelerated more than expected in September on energy and food prices. Inflation rose to 3.8 percent in September from 3.2 percent in August. The rate was forecast to climb to 3.7 percent.
In the European trading today, the euro fell to nearly a 1-year low of 176.62 against the yen, from an early high of 177.91. The euro may test support near the 174.00 region.
Against the Swiss franc and the pound, the euro dropped to near 2-1/2-month lows of 0.9260 and 0.8501 from early highs of 0.9353 and 0.8528, respectively. If the euro extends its downtrend, it is likely to find support around 0.91 against the franc and 0.83 against the pound.
Against the Australia and the New Zealand dollars, the euro dropped to a 9-day low of 1.6147 and a 10-day low of 1.9957 from early highs of 1.6250 and 2.0110, respectively. On the downside, 1.60 against the aussie and 1.98 against the kiwi are seen as the next support levels for the euro.
Against the U.S. and the Canadian dollars, the euro edged down to 1.1221 and 1.5982 from early highs of 1.1269 and 1.6025, respectively. The euro may test support near 1.11 against the greenback and 1.58 against the loonie.
Looking ahead, U.S. jobs data for September, factory orders for August, U.S. Baker Hughes oil rig count data are slated for release in the New York session.
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