**Market Overview: Euro Struggles Amid Political Uncertainty in France, Bitcoin Surges Past $100,000**
**By Ankur Banerjee**
**SINGAPORE (Reuters)** – Forex traders are navigating a mixed landscape on Thursday, with the euro under pressure following the expected collapse of the French government. This political turmoil raises concerns about France’s economic stability, impacting the euro’s performance. Meanwhile, Bitcoin has reached a historic milestone, surpassing $100,000 for the first time, driven by regulatory expectations in the U.S.
Bitcoin’s recent rally highlights the growing interest in cryptocurrencies, soaring to an impressive $103,619 during Asian trading hours before stabilizing at approximately $102,162, marking a staggering 140% increase year-to-date. Analysts suggest that reduced regulatory risks and the increasing appeal of non-fiat assets are likely to propel Bitcoin prices further. Kyle Rodda, a senior financial market analyst at Capital.Com, indicates that favorable conditions may sustain this momentum.
On the currency front, the euro gained a slight 0.18%, trading at $1.052775. However, this remains close to a two-year low of $1.03315 reached in late November as the market braces for ongoing instability in France. Following a no-confidence vote against the government, political uncertainty is expected to linger, according to ING economist Charlotte de Montpellier. The difficulty in forming a new government may continue to dampen both business and consumer confidence in the region.
The European Central Bank (ECB) is anticipated to make significant adjustments as traders predict a rate cut next week—market sentiment is pricing in a total of 157 basis points of easing by the end of 2025. ECB President Christine Lagarde cautioned about potential economic slowdown in the euro zone and acknowledged financial stability as a crucial component in maintaining price stability.
In Asia, the Japanese yen appreciated over 0.5% to 149.80 per dollar. Anticipation surrounding a potential interest rate hike by the Bank of Japan (BOJ) has intensified, though contradictory media reports suggest the central bank may opt to forgo increasing rates this month. BOJ board member Toyoaki Nakamura emphasized the need for a cautious approach to rate adjustments.
Meanwhile, the South Korean won is struggling amidst political turbulence following President Yoon Suk Yeol’s controversial declaration and subsequent retraction of martial law. The South Korean government plans to activate a market stabilization fund worth 40 trillion won ($28.35 billion) to stabilize the currency, which has suffered as one of the worst-performing Asian currencies this year, currently trading at 1,414.41 per dollar.
In the United States, despite a slight pullback in services sector activity, investor expectations for a rate cut remain strong. Jerome Powell, the Federal Reserve Chair, hinted at a more measured pace of interest rate cuts moving forward. Market participants are particularly focused on Friday’s non-farm payrolls report, as economists project an increase of 200,000 jobs for November, a rebound from a concerning rise of just 12,000 in October.
The dollar index, which tracks the greenback against six major currencies, was at 106.18 as traders formulated their strategies for the upcoming US economic data releases. The Australian dollar was flat at $0.64241 after experiencing a sharp decline, while sterling hovered around $1.2714.
As forex traders monitor these developments, attention to both geopolitical events and central bank policy shifts will be crucial in navigating current market volatility and identifying potential trading opportunities.
Image from Comparic.pl, licensed under CC BY 4.0.
