French Fiscal Crisis Triggers Euro Selloff: EUR/USD Slips Toward 1.1100 as OAT-Bund Yield Spread Widens

EURUSD pared most of its gains as the German and French yield spread widens..It hit an intraday low of 1.11735 and is currently trading around 1.11750.

Investors are seeking a far higher risk premium for holding French debt given the worsening fiscal outlook, political uncertainty before the 2027 presidential election, and worries over France's capacity to control one of the largest budget deficits in the eurozone; hence, the difference between 10-year French OATs and German Bunds has grown to around 150–160 basis points—its highest level since the eurozone debt crisis in 2011–2012. French 10-year yields have soared to almost 4.8–5.0%, the highest since 2002, while German yields remain around 3.5%, reflecting Germany's relative safe-haven position and stronger financial stability; this disparity is seen by markets as a "guilty verdict" on France's financial and political course, with contagion spilling over into the euro, which has sunk to multi-month lows against the dollar as the OAT-Bund gap widens.

Major support-1.11500/1.1000/1.10 Near-term resistance-1.1265/1.1300/1.1365/1.1400/1.1435/1.1500.

It is good to  Sell on rallies around  1.1218-20 with SL around 1.1270  for a TP of 1.1100/1.0700.