The euro is trading around $1.052, close to a two-year low amid the political crisis in France. A vote of no confidence in the government has increased uncertainty, which could delay resolution of budget problems and undermine business and consumer confidence. ECB President Christine Lagarde expressed concern about financial stability but refrained from direct support measures. At the same time, given the risks of slowing economic growth in the eurozone, markets expect a significant reduction in ECB rates, plotting a 157 basis point cut by 2025. This soft policy puts pressure on the euro, contributing to EUR/USD volatility.