Maybank: Political predicament in the Eurozone strengthens the dollar, euro falls to its lowest since May 2025

智通财经2026/10/05 05:36

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(1) Analysts from Maybank stated that the euro remained under pressure during the Asian trading session, as the political dilemmas in the eurozone highlighted the strength of the US dollar. (2) The analysts wrote that France’s public debt had reached 119% of GDP and is expected to climb to 122% before receding, with concerns over French sovereign bonds erupting last week. (3) They added that the most worrying aspect is France's plan to borrow a record amount in 2027 to help finance spending and repay debt. (4) There are already signs of contagion as yields surge among other heavily indebted peripheral eurozone economies such as Greece and Italy. (5) The market has revised down expectations for ECB rate hikes, but still anticipates one hike this year. (6) The euro dropped 0.6% to $1.1184, after touching $1.1161 earlier, its lowest intraday level since May 2025.

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