France's political turmoil shakes the euro and deepens the interests of the landing

The euro began to show signs of weakness, while investors reduced their exposure to the importance of Ascension, in collaboration with the growing political turmoil in France. The European currency is currently trading below the $ 1.17 level, en route to a second daily registration in a row, after Monday in more than a week to the lowest levels, after the surprising resignation of French Prime Minister Sebastian Lucurno, which deepens the internal political crisis. A common options index, which is used to monitor the direction of the currency, has turned into a falling range to a wave of optimism that lasted for a while, reflecting the willingness of traders to the possibility of more losses. Market flow shows the same trend, as the states of the deposit -true corporation indicate that the trend to agricultural has reached its highest level in a month. The closure of the US government increases the impact of Europe news that interferes with what happened during the last major political tensions in France. On September 8, when then Prime Minister Francois Bayro lost confidence, the positive momentum of the euro existed, as the currency rose 0.4% on that day, and DTCC data showed that the options made money to the upward trend, with my name 60 to 40 in favor of betting on the rising rise. This transformation is partly attributed to the decline in US stimuli during the closure of government, which gives European news more impact on the markets. It may also be an indication of a broader shift in the preparation process, as the nominal share of the luxury bets has decreased over a period of four consecutive weeks, from about 60% to less than 55%, reflecting a gradual slowdown in momentum. Also read: France receives the third negative evaluation of a credit rating agency within two weeks, and although morale in the longest term options contracts continues to rise, it is trading at the lowest price difference since the beginning of August, at a time when the euro stands near a long -term resistance area, while short -term indicators are currently tending. What is the opinion of Bloomberg strategy? “The durability of the euro, despite the poor data, indicates that the market still meets the narrative that the end of the exceptional growth phase in the United States will pave the European wealth. -Skailar Montgomery king, macro -economic strategy