Last night we eventually saw Michel Barnier ousted as Prime Minister as he lost the no-confidence vote after his attempt to push through his social security policy came up against huge resistance in the French Parliament. This has left France in political turmoil and now face the potential of having deadlock in parliament, as the earliest Macron can call an election is July, and the next Prime Minister will ultimately face the same backlash as Barnier.
The Euro however has escaped largely unpunished off the back of this, simply because the biggest falls were experienced on Monday when the vote was declared.
Bank of England governor has also validated expectations for just four rate-cuts throughout the duration of 2025, allowing GBP to be one of the best performing currencies next year. The Bank of England expect to make one rate-cut per quarter which will ultimately keep rates elevated when compared to The European Central Bank as The UK seem to be pushing a higher for longer narrative.
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