Euro Falls on Weak PMI Data and Debt Concerns

2026-10-23 08:29 By Joana Ferreira 1 min. read

The euro dropped to $1.12, remaining close to multi-month lows following the release of weaker-than-expected PMI data, while concerns over social unrest and rising public debt across Europe continued to weigh on the currency.

Flash data showed eurozone private-sector growth slowed in October to a four-month low, pressured by rising energy costs, higher interest rates and renewed contraction in France amid political and fiscal uncertainty.

Consumer confidence also deteriorated more sharply than expected.

Meanwhile, investors remain concerned about rising borrowing costs across Europe, particularly in France, where 10-year government bond yields reached fresh 24-year highs and the risk premium climbed to levels last seen during the 2011 eurozone sovereign debt crisis.

Looking ahead, further demonstrations are expected across the region this weekend, while investors await next week’s inflation data and the ECB’s policy meeting, where rates are widely expected to remain unchanged.



News Stream
Euro Falls on Weak PMI Data and Debt Concerns
The euro dropped to $1.12, remaining close to multi-month lows following the release of weaker-than-expected PMI data, while concerns over social unrest and rising public debt across Europe continued to weigh on the currency. Flash data showed eurozone private-sector growth slowed in October to a four-month low, pressured by rising energy costs, higher interest rates and renewed contraction in France amid political and fiscal uncertainty. Consumer confidence also deteriorated more sharply than expected. Meanwhile, investors remain concerned about rising borrowing costs across Europe, particularly in France, where 10-year government bond yields reached fresh 24-year highs and the risk premium climbed to levels last seen during the 2011 eurozone sovereign debt crisis. Looking ahead, further demonstrations are expected across the region this weekend, while investors await next week’s inflation data and the ECB’s policy meeting, where rates are widely expected to remain unchanged.
2026-10-23
Euro Weakens Amid French Fiscal Concerns
The euro remained under pressure around $1.12, as rising French borrowing costs and worsening tensions between the US and Europe over Russia’s war in Ukraine weighed on sentiment. France’s 10-year OAT yield climbed above 5%, its highest level since 2002, reflecting mounting concerns over France’s public finances and social unrest. Meanwhile, relations between Washington and European allies have deteriorated as US President Donald Trump deepens his engagement with Russian President Vladimir Putin. Recent moves, including easing sanctions on Moscow and questioning Ukraine’s political leadership, have heightened uncertainty over Western unity and future support for Kyiv. Elsewhere, rising oil prices amid the ongoing Iran war have intensified inflation concerns and increased expectations of tighter monetary policy, weighing on Europe’s growth outlook. Political uncertainty ahead of key elections across major European economies has added to the pressure on the single currency.
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European Stocks Extend Losses
European stocks fell on Tuesday, with the STOXX 50 declining 0.7% to trade at low levels not seen in about four months and the STOXX 600 losing 0.4%, extending the previous session’s losses of nearly 1%. Sentiment remained subdued amid renewed pressure on AI-related stocks and concerns over elevated valuations in the sector. Rising oil prices and continued concerns over political unrest and instability in France also weighed on European markets. Among individual stocks, ASML Holding dropped 2.8%, while Siemens fell 3.0%. Schneider Electric declined 3.6%, Safran lost 1.3%, and Siemens Energy slipped 2.5%. ABB tumbled 4.5% despite reporting third-quarter results broadly in line with market expectations. On the other hand, Novartis (0.6%), SAP (0.9%), Sanofi (1.6%) booked gains.
2026-10-20