EUR/GBP holds near three-week low as French political turmoil caps Euro’s recovery

EUR/GBP hovers near 0.8665, its weakest level since September 16.
Political turmoil in France remains a drag on the Euro.
Traders eye ECB President Lagarde’s speech later Wednesday and the ECB Meeting Accounts on Thursday.

Vishal Chaturvedi FXStreet

The Euro (EUR) holds steady against the British Pound (GBP) on Wednesday, attempting to stabilize after sliding earlier in the day. At the time of writing, the EUR/GBP cross is trading around 0.8665, hovering near its weakest level since September 16.

The Euro managed to find support even as political tensions in France remained elevated, while the Pound lost some momentum following the release of the Bank of England’s (BoE) Financial Policy Committee (FPC) Meeting Minutes.

Political uncertainty in France remains a headwind for the common currency after Prime Minister Sébastien Lecornu resigned, deepening a standoff with President Emmanuel Macron over the budget. Speaking earlier in the day, Lecornu said he is confident that France will have a budget in place by the end of the year and that he would present his findings to President Macron later in the evening. Hopes of progress in these negotiations have helped to stem further losses for the Euro, easing fears of prolonged fiscal paralysis or snap elections.

On the monetary policy front, remarks from European Central Bank (ECB) officials offered a measure of reassurance. Governing Council members Müller, Escrivá and Nagel said the Eurozone economy is on a gradual recovery path, that inflation is near the 2 percent target with expectations anchored, and that current interest rates remain appropriate.

The Pound trimmed earlier gains after the BoE’s Financial Policy Committee minutes signalled no change to the countercyclical capital buffer or the leverage ratio. The committee highlighted that stretched equity valuations, especially in major global markets, leave the system vulnerable to a sharp correction, with any sudden repricing of US assets or shifts in investor confidence likely to spill over into the UK.

Looking ahead, traders will watch for remarks from ECB President Christine Lagarde later on Wednesday for fresh clues on the monetary policy outlook. Attention will also turn to comments from BoE Chief Economist Huw Pill due later today. The focus will then shift to the ECB’s Monetary Policy Meeting Accounts due on Thursday. The UK economic calendar is relatively light this week, leaving the cross more sensitive to Euro-related headlines and broader market sentiment.

Economic Indicator

ECB Monetary Policy Meeting Accounts

ECB Monetary Policy Meeting Accounts contain an overview of financial market, economic and monetary developments. It's followed by a summary of the discussion, in an unattributed form, on the economic and monetary analyses and on the monetary policy stance. The accounts offer a fair and balanced reflection of policy deliberations. The aim is to provide the rationale behind monetary policy decisions and enable members of the public to improve their understanding of the Governing Council’s assessment of the economy and its policy responses in the light of evolving conditions.

GBP/USD hovers around daily lows near 1.3450

GBP/USD trades with decent losses on Thursday, revisiting the 1.3450 zone. Cable’s resumption of the selling interest comes after two daily advances in a row and follows the improved sentiment around the Greenback amid fresh concerns in the Middle East.

EUR/USD slips back to two-day lows near 1.1510

EUR/USD faces some renewed downside pressure and retests the low 1.1500s in the latter part of Thursday’s NA session. The move lower in spot comes after two daily advances in a row and follows the fresh bid bias in the US Dollar amid the re-emergence of some effervescence in the Middle East. Moving forward, US NFP data will take centre stage on Friday.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

Ethereum Price Forecast: Whales absorb retail distribution as bear market nears late stage

Ethereum (ETH) large holders have been accumulating the supply of retail investors in 2026. In a report released late Wednesday, CryptoQuant analysts highlighted that the supply of the 1K-10K ETH cohort has fallen from 15.6 million ETH in January to roughly 12.9 million ETH.

Markets question Fed's inflation resolve after July FOMC meeting

Federal Reserve Chairman Kevin Warsh continues to project a tough stance on inflation, repeatedly promising to restore price stability and keep inflation anchored at the central bank's longstanding 2% target. But according to Mike Maharrey in this week's Money Metals Midweek Memo, markets are beginning to judge the Fed by its actions rather than its rhetoric—and so far, they aren't convinced.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.