French political turmoil clouds Moody`s review

by Dramelin 10:30 PM 0 comments

"Cutting the outlook on French debt would "be a bit premature," Heng said, though Le Pen`s publication of a 144-point manifesto to take France out of the Eurozone is contributing to elevated stress in the French debt, he said: "That worried investors. "Olivier Desbarres, independent G10 FX strategist suggested Moody`s may even take action before the presidential polls conclude. "The recent rise in French yields, although modest, could at the margin be stretching debt dynamics. Macquarie`s FX strategy team said the expected Moody`s ratings review was a "scheduled exercise" and didn`t necessarily imply any action, "but should be worth monitoring given how French yields have been rising in recent sessions. "The widening of this yield premium is a classic sign of increasing investor risk for France," said Heng Koon How, senior FX strategist at Credit Suisse.