The euro fell sharply against the US dollar during the first trading session of the week, recording its lowest level in a month, affected by political developments in France as well as higher-than-expected US employment data.
In this regard, French President Emmanuel Macron stated on Sunday that he would dissolve the National Assembly and call for early legislative elections after his party suffered a heavy defeat in the European Parliament elections yesterday, which negatively affected the euro’s trading against the US dollar.
The move comes as preliminary results in France showed the far-right National Rally party winning the European Union parliamentary elections, beating centrists supporting Macron, according to French pollsters.
At the same time, the euro was under strong downward pressure against the US dollar following US labor market data for May, which showed that the US economy added 272,000 jobs, higher than market expectations of 185,000 jobs, which reinforced speculation that the Federal Reserve would keep interest rates high for a longer period, and this added to the strength of the US dollar at the expense of the euro.
As a result of these events, the euro fell against the US dollar (EUR/USD pair) during Monday's currency market trading by 0.31% to reach approximately $1.0764.
