The euro is steady ahead of an important vote of no confidence in the government in France



The single European currency settled at $1.0499 and £0.8283 ahead of the parliamentary vote. France About the vote of no confidence in the government, which will almost certainly topple the fragile coalition led by Prime Minister Michel Barnier.

Parliamentary officials said the debate was scheduled to begin at 15:00 GMT, with a vote expected to take place about three hours later.

The ouster of Barnier’s government will worsen the political crisis in the eurozone’s second-largest economy and could also increase pressure on the euro, which has fallen sharply since Donald Trump won the US presidential election in November.

Investors interested in the euro will also be waiting for statements from European Central Bank President Christine Lagarde, which she will make later in the day.

The Australian dollar fell 1.22 percent to a four-month low of $0.6407 after data earlier on Wednesday showed the economy grew at its slowest annual pace in the third quarter since the Covid-19 pandemic.

Investors also focused on the won, which recovered somewhat on Wednesday after falling after South Korean President Yeon Suk-yeol declared a state of emergency, a decision he reversed just hours later.

The dollar was last down 0.6 percent against the South Korean currency at 1,416 won, after jumping 1.6 percent overnight. But politics remained the focus, with South Korean lawmakers introducing a bill to impeach the president on Wednesday.

Traders said South Korea’s central bank may have supported the won at the open today by selling dollars.

The dollar rose 1 percent against the Japanese currency to 155.20 yen after media reports cast doubt on market expectations that the Bank of Japan will raise interest rates this month, sending government bond yields lower.

The dollar gained some support yesterday, Tuesday, after data showed U.S. job openings rose modestly in October while job losses eased, even as U.S. Federal Reserve officials gave no final indication of what they intend to do on the end of his next meeting on monetary policy in the next few days.

Traders await key monthly jobs data from Friday for further clues on interest rate expectations.

The pound sterling fell to $1.2665 after falling briefly under pressure from comments from Bank of England Governor Andrew Bailey.





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