France’s widening bond spread and new local curfews sharpened attention on its fiscal risks as FXStreet put the euro near $1.1215 against the dollar in an Oct. 20 update.
Reuters had placed the euro at $1.1212 on Oct. 19, down 0.24%, as a rebound in artificial intelligence stocks also supported the dollar. The Reuters and FXStreet readings were both above $1.12, but came from separate market snapshots.
In Reuters’ Oct. 19 reading, the yield gap between French OATs and German Bunds stood at 147 basis points. That was roughly 37 points wider than its late-September reading of about 110 basis points. Reuters compared the latest gap with levels seen during the 2011-12 European debt crisis.
France’s enacted 2026 budget targets a public deficit of 5.0% of gross domestic product. The European Commission’s May forecast projected deficits of 5.1% in 2026 and 5.7% in 2027, with the 2027 figure based on unchanged policies. The Commission cited expiring revenue measures and higher spending, including interest payments, in its outlook.
French Prime Minister Sébastien Lecornu said he had instructed prefects to impose partial curfews after weekend violence and looting. The Associated Press reported, citing a Paris police statement, that an overnight curfew covered Place de la République and Les Halles on Oct. 19-20.
Commerce Minister Serge Papin provisionally estimated that at least 3,000 shops had been damaged or looted. Lecornu said 100% compensation through a partial-work program would begin Oct. 20 to protect jobs at affected shops. A separate business support fund was still being prepared.
Germany’s ZEW economic sentiment indicator is scheduled for release Oct. 20 at 5:05 a.m. ET (9:05 UTC).
