EUR/GBP fell on Friday to its lowest since April 2025 and is down more than 2% this month, on track for its worst monthly showing since July 2022; sterling has outperformed all other G10 currencies versus the euro. Markets point to French political and fiscal turmoil—difficulty controlling the budget deficit has triggered sharp bond-market volatility and pushed French borrowing costs to 25-year highs—while a relatively muted UK budget has reinforced sterling. Wells Fargo strategist Marcus Jennin

EUR/GBP fell on Friday to its lowest since April 2025 and is down more than 2% this month, on track for its worst monthly showing since July 2022; sterling has outperformed all other G10 currencies versus the euro. Markets point to French political and fiscal turmoil—difficulty controlling the budget deficit has triggered sharp bond-market volatility and pushed French borrowing costs to 25-year highs—while a relatively muted UK budget has reinforced sterling. Wells Fargo strategist Marcus Jennings says France faces greater political and fiscal risk ahead of next year’s national election amid protests over education and cost of living, and expects EUR/GBP to trade near 0.83 by year-end.