The euro is at its lowest level in a month after a call for early French elections Economy

The euro fell after French President Emmanuel Macron called for early legislative elections, after his party’s defeat by the far right in the European Parliament elections, while the dollar rose before the US Central Bank meeting this week.

The euro fell to $1.0764, its lowest level since last May 9, in early trading in Asia, and recorded in its most recent trading a decline of 0.52% to $1.0743, as investors assessed the repercussions of renewed political uncertainty in the second largest economy in the euro zone during an important election year.

European Union elections

Eurosceptic nationalist parties achieved their largest gains in the European Parliament elections yesterday, Sunday, according to exit polls, prompting Macron to demand early legislative elections, in a risk aimed at re-consolidating his power.

• The dollar recorded an increase of 0.37% at 105.28, which is its highest level since last May 9, according to the index that measures the performance of the US currency against 6 major currencies.
• The Japanese yen fell to 156.92 against the dollar, at the time of writing.
• The British pound settled at $1.271 after touching $1.2700, the lowest level in a week, earlier in the session.

gold

Gold regained some luster after prices recorded the largest daily decline in 3 and a half years in the previous session, due to the Chinese Central Bank’s suspension of purchases, the strong US jobs data, which disappointed those betting on Chinese demand, and the reduction in US interest rates.

Spot gold prices rose 0.5% to $2,305.94 per ounce, at the time of writing the report.

On Friday, gold fell 3.5%, or $83 per ounce, in the largest daily decline since November 2020, after the US jobs report came stronger than expected, dispelling expectations of the Federal Reserve (the US central bank) reducing interest rates in September.