Euro hits one-month low following Macron’s election call

The euro dropped sharply on Monday, reaching a one-month low of $1.07485 after French President Emmanuel Macron called a snap legislative election, sparking political uncertainty, Reuters reported.

The euro was down 0.44 per cent to $1.0753, having fallen over 2.5 per cent against the dollar this year, and it also hit its lowest point against the pound sterling since August 2022, while slipping 0.2 per cent against the yen.

Meanwhile, the dollar was buoyed by a stronger-than-expected jobs report, cooling expectations of a near-term rate cut by the Federal Reserve.

The European Central Bank (ECB) recently cut rates but provided limited guidance on future monetary policy due to persistent inflation above target levels.

Charu Chanana, head of currency strategy at Saxo, noted that the euro is facing significant downward pressure from both US economic data and European political developments.