Euro hovers at $1.17 after France credit downgrade

The euro was little-changed at $1.17 after Fitch downgraded France’s credit rating to A+ from AA-, its lowest on record.

The agency cited political instability and rising debt as newly appointed Prime Minister Sébastien Lecornu begins budget talks.

Attention now shifts to a packed week of central bank meetings. The Federal Reserve is expected to cut rates by at least 25 basis points on Wednesday amid concerns over its independence, as officials weigh a cooling labor market against inflationary pressures from tariffs.

The Bank of England and the Bank of Japan are widely expected to keep policy unchanged. Meanwhile, the European Central Bank last week signaled that its rate-cutting cycle may be over.

President Christine Lagarde said growth risks are now more balanced, suggesting policymakers are shifting toward a steadier stance after months of easing.