France’s overseas trade minister Laurent emphasised the country’s commitment to collaborating with the European Commission and its partners, asserting that France will not yield to threats and will protect its industries.
In financial markets, the EURUSD has dipped to new lows, nearing the broken 61.8% level from the September 2024 high at 1.08174. Pre-market trading shows declines in major indices: Dow is down by 15 points, S&P down by 8.3 points, and Nasdaq down by 66 points. Additionally, the GBPUSD is testing the broken 61.8% level from the September 2024 range at 1.29221.
France Stands Firm On Economic Policies
Laurent’s remarks highlight a firm stance on defending domestic businesses while maintaining cooperation with European authorities. By rejecting external pressure, France aims to uphold both economic stability and industrial interests. The statement suggests potential policy moves that could influence investor sentiment in the region. Any future measures taken by France or the European Commission may drive short-term fluctuations in currency movements, particularly in relation to the euro.
The euro-dollar pair slipping further suggests an ongoing bearish trend, with the price now hovering near the breached Fibonacci retracement. Breaking this level exposed weaker support zones, which may invite additional selling pressure unless buyers step in forcefully. The continued decline reflects broader sentiment in the currency market, where strength in the U.S. dollar has been reinforced by recent developments. Traders monitoring this pair should pay close attention to whether the price decisively holds below 1.08174 or attempts a rebound.
Equity markets are positioned lower ahead of the opening bell. The Dow, S&P 500, and Nasdaq futures point towards weaker sentiment among investors, reflecting caution before the trading session begins. These declines may indicate expectations of tighter financial conditions or reactions to recent macroeconomic events. The technology-heavy Nasdaq showing a larger drop relative to other indices suggests growth stocks could be facing stronger selling pressure compared to industrials or broader market segments.
Currency Trends And Market Sentiment
Sterling is also showing weakness, with its pair against the dollar pressing against the previously broken Fibonacci level. Much like the euro-dollar pair, whether the price remains below or reclaims this area holds weight in determining the strength of downward momentum. If sellers continue to dominate, deeper retracements may follow, shifting focus to key demand zones beneath 1.29221.
Taken together, currency movements suggest a strengthening dollar, while index futures indicate risk-off sentiment in equity markets. Monitoring price responses to these levels will be key in assessing whether trends extend or buyers step in to counter recent selling.
