The yield spread between French and German 10-year government bonds widened by 7.6 basis points (bps) to 87.3 bps, reflecting declining confidence following political instability in France, which has contributed to a depreciation of the euro.

U.S. economic data released on Monday indicated that the U.S. economy showed resilience in November, suggesting continued strength in economic activity. This has led to a stronger U.S. dollar. However, the Federal Reserve (Fed) remains cautious and will need to assess additional economic data before considering further interest rate cuts.

Source: Fxstreet