German Bunds' Safe-Haven Status Could Cap Euro's Losses
Dow Jones
Yesterday
1203 GMT - The euro's potential to extend its current losses should prove limited if German government bonds remain largely unaffected by the selloff in French bonds on fiscal concerns, Commerzbank's Thu Lan Nguyen says in a note. "One of the euro's key support factors is the safe-haven status of German government bonds," she says. As long as investors have access to a euro-denominated safe asset, worries that the French budget will struggle to get approved remain a problem for French bonds rather than for the euro itself, she says. The euro falls 0.4% to $1.1214 after reaching a 16-month low of $1.1160 earlier, LSEG data show.
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