EUR/USD steady as French PM Bayrou faces confidence vote at 1500 GMT

EUR/USD holds near 1.0550 ahead of today's crucial confidence vote on French Prime Minister Bayrou, expected around 1500 GMT. Markets anticipate Bayrou's ouster, yet the euro has shown remarkable resilience, shrugging off potential political instability in the eurozone's second-largest economy. The pair trades in a tight 20-pip range as traders weigh France's political uncertainty against broader eurozone fundamentals. Political turmoil in France historically pressures the euro, but current market positioning suggests investors are either underestimating risks or confident in the ECB's ability to maintain stability. Technical indicators show support at 1.0530 and resistance at 1.0580. A surprise vote outcome could trigger volatility, while Bayrou's expected removal may already be priced in. Traders should monitor subsequent political developments for potential euro weakness.