Pressure on euro as Macron calls for snap election
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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 ▼