The euro is clearly weakened by the chaotic political situation in France (and the prospect of a country permanently ungovernable after July 7).
The euro is down -0.7% against the greenback at 1.0733, -0.7% against the Swiss franc at 0.9600, and -0.65% against the yen.
The $-Index erased the previous day's losses with a gain of +0.6% to 105.30: short-term resistance has been emerging for 1 week below 105.5.

The single currency may have been weakened by the publication of industrial production in the euro zone, which disappointed with a 0.1% decline deemed "unexpected".

On the other hand, it rose by 0.5% in the EU (so it was Germany and France that were down), compared with March 2024, according to estimates from Eurostat, the European Union's statistical office.

Across the Atlantic: US producer prices (PPI) unexpectedly fell by -0.2% in May (to +2.2% year-on-year) due to lower energy prices, according to statistics published Thursday by the Labor Department.

Economists were forecasting a month-on-month rise of 0.1% (after +0.5% in April).

The 'core' index, which measures underlying pressure on producer prices excluding food, energy and commercial services, was perfectly stable last month after a 0.5% gain in April, and stands at +3.2% over 12 months.

The Labor Department announced that 242,000 new jobless claims were registered in the USA in the week to June 3, up 13,000 on the previous week.

This could have weakened the dollar, given the easing climate on the inflation front, but these "encouraging" figures were hampered by Jerome Powell's comments, which dampened investors' expectations of monetary easing.

His officials' new interest rate projections - the so-called "dot plots" - now show only one rate cut in 2024, compared with three so far.

Of the 19 members of the Monetary Policy Committee (FOMC), four anticipate no rate cuts this year, seven expect one and eight two.

Copyright (c) 2024 All rights reserved.