Search ForexCrunch

While speaking on LCI TV, French Finance Minister Bruno Le Maire revised France’s public deficit forecast from 8.5% to 9.0% on Sunday, per Reuters.

The diplomat also signaled the public debt to reach 118% of GDP this year, up from its latest forecast of 115%, while revising down the GDP growth forecast from 6% to 5% for this year, said the news.

The European country’s third national coronavirus (COVID-19) lockdown could be traced for the downbeat economic forecasts.

FX implications

Given the broad US dollar strength and covid challenges for Brussels, the news should weigh on EUR/USD prices. However, a long weekend in the markets seems to challenge the momentum and the quote seesaws around 1.1757 by the press time of early Monday in Asia.

Read:  AUD/USD stays pressured around 0.7600, long weekend defends bearish chart pattern