EUR/USD stable at 1.1180 despite French political tensions and Fed concerns

EUR/USD is showing remarkable resilience, trading steady at 1.1180 despite dual pressures from French political uncertainty and Federal Reserve policy debates. The pair has remained within a tight 30-pip range over the past 24 hours, with implied volatility dropping to monthly lows. French government instability, following budget disputes in parliament, has had limited impact on the euro, suggesting markets have already priced in political risks. Meanwhile, GBP/USD maintains strength at 1.3215, supported by expectations of slower Bank of England rate cuts. EUR/GBP has edged lower to 0.8455, reflecting relative pound outperformance. Technical analysis shows EUR/USD trapped between 1.1150 support and 1.1200 resistance, with a breakout needed for directional clarity. Traders await Thursday's eurozone inflation data and Fed Chair Powell's speech on Friday for potential catalysts to break the current equilibrium.