EUR/USD Resilient Despite France Credit Rating Downgrade

EUR/USD demonstrated remarkable stability following S&P's downgrade of France's credit rating from AA to AA-, trading near 1.1100 levels with minimal reaction to the negative news. The euro's resilience suggests markets had already priced in France's fiscal challenges, with the country's budget deficit expected to exceed 6% of GDP this year. The currency pair found support from broader dollar weakness, as traders await key US economic data releases this week. Technical indicators show EUR/USD holding above the crucial 1.1050 support level, with resistance at 1.1150. The muted response reflects growing market focus on ECB monetary policy rather than individual member state ratings. Traders should monitor upcoming Eurozone inflation data and any ECB commentary for near-term direction, as the pair consolidates within a tight range ahead of potential volatility catalysts.