The euro weakened against the dollar on Monday as investors weighed unrest in France, with Reuters reporting a 0.1% fall in Asian trading and FXStreet later placing the pair near $1.1230.
Reuters reported the euro at $1.1225 when Asian trading opened. FXStreet later put EUR/USD near $1.1230 in early European trading; the figures reflect separate trading windows. Reuters also said the dollar stabilized as the euro fell.
Kieran Williams, head of Asia FX at InTouch Capital Markets, told Reuters the effect of the unrest would come “mainly through French bonds rather than directly.”
In an address Sunday, French President Emmanuel Macron said several hundred thousand people had demonstrated Saturday. He said demonstrators raised concerns about living costs and fuel prices, while young people also voiced concerns about their living and study conditions. Macron linked the cost and fuel concerns to the conflict in the Persian Gulf. He expressed support for mayors and elected officials, and said violence had affected businesses and merchants.
FXStreet’s AI-assisted chart analysis assessed the near-term setup as bearish, citing EUR/USD’s position below its 100-day simple moving average and the 20-day middle line of the Bollinger Bands. It put the Relative Strength Index (14) near 40, with support at 1.1151, the Oct. 15 low, and resistance near 1.1270.
The Federal Open Market Committee’s (FOMC) next meeting is scheduled for Oct. 27-28. The European Central Bank’s next monetary policy meeting is set for Oct. 28-29.
