Rothschild Bank: France's soaring deficit is not good news for the euro

IG data December 27 news, UBS analyst Ipek Erzkaaldeska said in a report that due to increasing concerns in the market about the challenges faced by the new French government in dealing with the expanding budget deficit, the Euro Exchange Rate has dropped slightly. She said that there may still be disagreements within the French government and it is unlikely to approve a reasonable budget proposal to reduce the budget deficit. A rising deficit is usually not good news for the euro, as the difference between French and German 10-year bond yields is expected to approach 80 basis points by the end of the year, the highest level since the European sovereign debt crisis ten years ago.