Home Daily Commentaries Pressure on euro as Macron calls for snap election

Pressure on euro as Macron calls for snap election

Daily Currency Update

The euro experienced a drop on Monday, driven by political uncertainty following French President Emmanuel Macron's decision to call a snap election. This development unsettled markets and put pressure on the euro.

The European Central Bank's interest rate cut last week offered little in terms of forward guidance for monetary policy, given that inflation remains above target. Uncertainty about whether this will be the only rate cut from the ECB this year has provided some support for the euro.

Key Movers

Meanwhile, the US dollar remained steady ahead of the Federal Reserve's meeting later in the week. The dollar's strength was bolstered by a stronger-than-expected Non-Farm Payroll report released on Friday, which eased expectations for rate cuts and suggested that the Federal Reserve might delay the start of its easing cycle this year. This robust jobs data reinforced the view that the Fed could take a more measured approach before initiating any rate cuts.

Expected Ranges

  • GBP/USD: 1.2685 - 1.2755 ▲
  • GBP/EUR: 1.1785 - 1.1865 ▲
  • GBP/AUD: 1.9255 - 1.9335 ▲
  • EUR/USD: 1.0705 - 1.0795 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.