EUR/USD rebounds as France moves to cut deficit, OAT-Bund spread narrows

EUR/USD rebounded during the European session after the French government took steps to reduce its deficit, which narrowed the spread between French OATs and German Bunds. The source reports no price move, pip figure or levels. Broader risk sentiment improved as oil prices fell and bonds rallied. France's fiscal situation remains a central theme for the euro. Commentary described the country as having its 'Liz Truss moment', with the bond market forcing a policy rethink, and analysis examined how France's budget problems are becoming the euro's problem. Elsewhere, gold stayed rangebound, with the US-Iran stalemate and CPI risk capping its upside. Ethereum consolidated at a major trendline as the Glamsterdam upgrade reached the Sepolia testnet. For traders, the OAT-Bund spread is a key gauge of French fiscal risk feeding into the euro. Further narrowing would support the EUR/USD rebound, while renewed widening would put the euro back under pressure.