06:03 AM EDT, 10/15/2025 (MT Newswires) -- The euro (EUR) found support on Tuesday after positive political developments in France, said ING.

Prime Minister Sebastien Lecornu pledged to delay the pension reform, a key demand from the Socialist Party, which in turn said it won't back Thursday's no-confidence vote. With Socialist support, the chances of passing a budget have meaningfully improved, even if parliamentary numbers remain tight, wrote the bank in a note.

The draft budget targets a deficit reduction from 5.4% to 4.7% this year, though the pension freeze may dent market confidence in long-term fiscal consolidation, stated ING.

Still, with the 10-year OAT-Bund spread back below 80bps -- its tightest in a month -- the euro looks less fragile. If Lecornu survives the no-confidence vote, EUR/USD could edge higher and potentially build strong support around 1.160, added the bank.

The Central and Eastern European (CEE) market continues to be dictated by the global story, and Tuesday's late turnaround higher in EUR/USD may provide some support for CEE currencies on Wednesday, according to ING. At the same time, Hungary's forint (HUF) and the Czech Republic's koruna (CZK) rates saw some stabilization on Tuesday, while EUR rates continue to rally, also providing some support for CEE currencies from wider rate differentials.

EUR/HUF could test 391 and EUR/CZK levels below 24.300 on Wednesday, noted the bank.

On the other hand, EUR/PLN has little reason to change anything at current levels near the upper end of ING's range of 4.245-275. Still, the first appearances of CEE policymakers at the International Monetary Fund meetings in Washington could bring some fresh air into the rather muted local story on Wednesday.