European Political Uncertainty Could Test Euro's Resilience -- Market Talk

1022 GMT - Uncertainty over France and Germany's political outlook could test the euro's resilience versus the dollar, HSBC's Paul Mackel says in a note. "One should not conclude the uncertainty around U.S. mid-terms is dollar negative when there are European political ambiguities too." The risk of a no-confidence vote in the French government lingers after Prime Minister Sebastien Lecornu said he would reduce fiscal spending by 54 billion euros in 2027, he says. In Germany, Chancellor Friedrich Merz's Christian Democratic Union suffered heavy losses in two state elections at the weekend. The euro trades flat at $1.1479. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

September 21, 2026 06:23 ET (10:23 GMT)