Euro Losses Should Prove Limited as German Bonds Offer Support -- Market Talk

1205 GMT - The euro is unlikely to fall much further in response to French debt concerns, Commerzbank's Thu Lan Nguyen says in a note. Worries about France's fiscal position has led to higher yields in French government bonds. However, German government bonds provide an important source of support for the euro as a safe haven. "As long as investors retain access to a safe euro-denominated asset, the problems facing the current government in Paris remain a problem for French government bonds rather than for the euro." The euro trades flat at $1.1211, having reached a 17-month low of $1.1112 last week, LSEG data show. Commerzbank expects it to reach $1.15 by December. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 20, 2026 08:05 ET (12:05 GMT)