EUR/USD moved higher and tried to stay above 1.0500 during European trading hours on Thursday. The major currency pair edged higher as investors tried to recover from the collapse of Michel Barnier's three-month-old government after it lost a no-confidence motion brought by a coalition of the right and left.
The collapse of the French government has plunged the economy into a deeper crisis by limiting its ability to tame a growing fiscal deficit.
Left and right-wing lawmakers backed the no-confidence motion against Barnier after claiming his government's budget was "flawed and detrimental" to the French people.
The budget proposed €60 billion in tax hikes and spending cuts aimed at taming France's ballooning deficit, according to Firstpost.
Source: FXStreet
