Euro Plunges as French Debt Crisis Deepens. Forecast as of 02.10.2026

The French government's presentation of its draft budget sent the EUR/USD pair to 16-month lows. However, developments in the US also contributed to the rise in domestic bond yields. Let's examine the situation and develop a trading plan.Major Takeaways The US dollar is being bought as a safe-haven asset. Bond yield spreads are signaling a crisis. France's draft budget will be difficult to approve. Short positions can be opened with targets of 1.1200 and 1.1000.Weekly Fundamental Forecast for Eu