Euro slips to one-month low as Macron calls French election
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The euro fell to $1.0764, its lowest since May 9, as French President Emmanuel Macron called a shock election after far-right gains in European Parliament elections. Eurosceptic nationalists made the biggest gains in the Sunday vote, prompting Macron to take a risky gamble to try to reestablish his authority. U.S. nonfarm payrolls data showed job growth exceeding expectations, impacting Fed rate cut expectations. The dollar index rose to 105.09, the highest since May 30, after U.S. nonfarm payrolls expanded by 272,000 jobs last month, exceeding economists' forecast of 185,000. Traders shifted their expectations of when the Fed will cut rates and by how much, with markets now pricing in 36 basis points of cuts this year compared to nearly 50 bps before the jobs data. The chances of a rate cut in September are now at roughly 50%. The Fed is not expected to make any change at its policy meeting this week but the focus will be on the comments from Fed Chair Jerome Powell and changes to economic projections from the policymakers. The Japanese yen weakened to 156.95 in early trading on Monday. Sterling was flat at $1.2723.

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https://m.economictimes.com/markets/forex/euro-slips-to-one-month-low-as-macron-calls-french-election/articleshow/110858411.cms