2025-10-07T08:30:50Z

---

In a jaw-dropping turn of events, France's Prime Minister Sebastian Lecornu unexpectedly resigned yesterday morning, shocking the political landscape once again. His tenure was so brief that it barely outlasted that of Liz Truss, the former UK Prime Minister, who famously left her post after just seven weeks due to a disastrous financial scheme. This unprecedented political instability has raised eyebrows and questions about France’s governance, as highlighted by FX analyst Michael Pfister from Commerzbank.

With Lecornu’s resignation echoing through Europe, many are left wondering about the future of not only France but the euro itself. Historically, the euro has shown remarkable resilience against French political turmoil, largely because German government bonds remain a safe haven for investors. However, the immediate aftermath of Lecornu's departure saw the euro dip slightly, with the EUR/USD exchange rate falling by about half a cent.

Analyzing these currency movements, it’s evident that they stemmed from two primary factors: a weakening euro and a strengthening US dollar. Interestingly, around 9:30 AM German time, about half of this euro weakness could be attributed to Lecornu's resignation, while the other half of the equation involved the US dollar making gains. Despite these fluctuations, the overall impact was short-lived, with EUR/USD closing the day only marginally lower than it started.

Interestingly, as the dust settled on France's political drama, the market seemed to shift its focus toward Japan, where the potential appointment of a new Prime Minister carried more weight in currency trading than the chaos in France. This suggests that while French politics remains turbulent, global investors are looking beyond national borders to gauge stability in other parts of the world.

In a world where political stability is increasingly uncertain, Sebastian Lecornu's rapid resignation highlights the fragility of leadership in France and the broader implications for the euro and international markets. As we ponder the future of French governance, one can't help but wonder: what’s next for the land of liberty, equality, and fraternity?