The euro fell in New York on Thursday as the gap between French and German 10-year government bond yields widened to a level last seen in 2011, while oil prices rose.
Reuters reported the euro down 0.3% at $1.1198 in New York and the yield gap at 177.7 basis points. The news agency described the spread as its widest since 2011. Earlier in Europe, FXStreet put EUR/USD near $1.1234 at 4:16 a.m. ET (08:16 UTC).
Oil also advanced. FXStreet’s morning snapshot put West Texas Intermediate crude about 2% higher at $99.50 a barrel. The Associated Press reported Brent crude up 2.2% to $111.19 after it touched a five-month high. The figures refer to different oil benchmarks and trading snapshots.
Eurostat, the European Union’s statistical office, reported France’s government deficit at 5.1% of GDP and public debt at 115.7% of GDP in 2025. The European Commission’s Spring 2026 forecast projected debt of 118.1% of GDP and interest payments of 2.6% of GDP in 2026. The Commission linked the forecast rise in interest costs to higher rates on new bonds and inflation’s effect on indexed debt.
Eurostat’s 2024 figures show net imports met 57% of the European Union’s energy needs, while oil and petroleum products made up 67% of its energy imports. Chris Scicluna, head of economic research at Daiwa Capital Markets, told Reuters that “AI is making people nervous,” and also cited oil and France.
The Flash Eurozone PMI is scheduled for 4 a.m. ET (08:00 UTC) Friday, Oct. 23. The Federal Open Market Committee (FOMC) is scheduled to meet Tuesday and Wednesday, Oct. 27-28, while the European Central Bank meeting is scheduled for Wednesday and Thursday, Oct. 28-29.
