EUR/USD drops as French PM resigns, ECB holds rates steady

EUR/USD declined 0.4% to 1.0975 as France's Prime Minister Sébastien Lecornu resigned, intensifying political uncertainty in the eurozone's second-largest economy. The resignation triggered risk-off sentiment, pushing French bond yields higher and weighing on the common currency. The European Central Bank maintained its current rate stance, providing no new guidance on future policy moves. French political instability adds pressure on President Macron's government, potentially complicating fiscal reforms. Meanwhile, Saudi Arabia's oil price adjustments are supporting USD strength through energy market dynamics. Technical indicators show EUR/USD testing support at 1.0950, with the 50-day moving average at 1.0920 as the next key level. Traders are monitoring French political developments closely, as prolonged uncertainty could further pressure the euro toward 1.0900 psychological support.