Euro Undervalued Vs Dollar, at Risk of Further Losses -- Market Talk

0816 GMT - The euro is about 1.5% undervalued versus the dollar relative to short-term fundamentals following recent losses due to French debt concerns, ING's Francesco Pesole says in a note. "This suggests a moderate build-up in France-related risk may be becoming entrenched in the euro, but also that the risk premium could expand further if French bonds continue to lose value." However, expectations that this year's French budget can be passed via decree might help contain the spread between 10-year German and French government bond yields, he says. The euro rises 0.3% to $1.1187 after reaching a 17-month low of $1.1151 Monday, LSEG data. ING sees a risk of it falling below $1.11, although expects some stabilization Tuesday. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 13, 2026 04:16 ET (08:16 GMT)