#euro

#euro

Negotiators from the US and Ukraine signalled meaningful progress toward a refined peace framework. Talks in Geneva were described as "highly productive," which could support a more positive sentiment for European markets. The constructive tone gave the euro a lift, reflecting expectations of reduced geopolitical risks in Europe. Still, the currency's upside remains constrained by fiscal and political uncertainty in France. Over the weekend, the National Assembly rejected key sections of the 2026 budget bill, reigniting concerns about Paris's ability to deliver fiscal consolidation

The euro saw mixed performances against other major currencies. The currency could remain exposed to the political developments in France, while firm German wholesale price data provided some support. President Emmanuel Macron reappointed Sébastien Lecornu as prime minister late on Friday after his resignation. However, the move could leave investors cautious. In Germany, wholesale prices rose 1.2% year-on-year in September, accelerating from 0.7% in August and marking the tenth consecutive month of gains.