France’s 2027 budget returns to lawmakers next week as the Federal Reserve and European Central Bank (ECB) approach rate decisions, with the euro near $1.12 against the dollar on Oct. 20.
The ECB set its daily reference rate at $1.1215 per euro. In a separate market snapshot, FXStreet reported a price of $1.1223 at 9:55 a.m. ET (13:55 UTC), up 0.10% on the day. The two readings were taken at different times.
France’s National Assembly suspended debate on the first part of the proposed 2027 state budget after its Oct. 19 sitting. It says discussion will resume from Oct. 27. The government forecasts a public deficit of 5.0% of gross domestic product in 2027, compared with its revised 5.4% forecast for 2026. Both figures remain projections.
Agence France Trésor projects €339.7 billion in state financing needs for 2027, €28.0 billion above its revised estimate for 2026. The agency says €19.4 billion of that increase reflects medium- and long-term debt coming due. It also projects €72.9 billion in debt service costs for 2027.
The Fed raised its target interest rate range by a quarter percentage point to 3.75%-4.00% in September. Reuters reported that 94 of 100 economists in its Oct. 16-20 poll expected the Fed to hold rates steady at its Oct. 27-28 meeting. All 100 forecast an increase in December. Those are economists’ forecasts, not Fed decisions.
The ECB raised its deposit rate to 2.50%, effective Sept. 16. Eurostat reported euro-area annual inflation of 3.8% in September, up from 3.2% in August. In an Oct. 17 statement, ECB President Christine Lagarde linked tighter financing conditions to a rise in long-term interest rates since the bank’s previous meeting.
France’s budget debate is set to resume from Oct. 27. The Fed’s rate decision is scheduled for Oct. 28 and the ECB’s for Oct. 29; Eurostat’s preliminary October inflation estimate follows Nov. 4.
