The Euro bounces slightly against the US Dollar after the sharp correction registered on Monday.
Traders assess the impact of the French political turmoil after a headline-filled trading day.
Markets are looking ahead to the final US Nonfarm Payrolls data due on Friday.
The Euro recovers firmly above 1.0500 against the US Dollar on Tuesday after losing 0.78% on Monday due to doubts over the stability of the French government. French Prime Minister Michel Barnier used a special decree to pass his social budget reform by circumventing the French parliament, a move that set off bad blood with the opposition parties, which were very quick to support a vote of no confidence that could be held as early as Wednesday.
Meanwhile in the US, Federal Reserve Governor Christopher Waller said that he is keen for a December interest-rate cut. This has pushed up the odds for that rate cut to take place, narrowing the rate differential between European and US bond yields. Some further easing from the US Dollar should materialize on the back of this, giving further impulse to the EUR/USD pair ahead of the US JOLTS Job Openings report to be published in Tuesday’s American session.
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