The euro was relatively stable while European stock markets fell on Monday, while France prepared to deal with a hung parliament after a left-wing coalition topped the electoral race.
Attention is also drawn to data to be released this week from the United States and the Eurozone in search of more indicators on the path of global monetary policy.
The euro is stabilizing
The euro recorded a decline at the beginning of trading on Monday after indications emerged that the French parliamentary elections that took place yesterday, Sunday, will likely lead to a hung parliament, adding more uncertainty to the country’s path in financial and monetary policies. But the European currency stabilized again against the dollar.
The euro fell 0.1% to $1.08235 and had previously declined by up to 0.4% amid traders' assessment of the consequences of a hung parliament in France, but the European currency returned to stabilize at $1.0842.
Expectations of the results of the French elections indicated many surprises, including the left-wing New Popular Front alliance obtaining first place, and the right-wing nationalist National Rally party led by Marine Le Pen, which is skeptical of European Union membership, obtaining last place after it was most likely to obtain the largest percentage of votes in the polls. Before yesterday's vote, Sunday.
Stocks are falling
By 07:11 UTC, the European STOXX 600 index fell 0.1%, weighed down by losses in energy stocks that tracked the impact of falling oil prices.
The French Stock Exchange fell 0.4%, making it the biggest loser in Europe at a time when Paris is preparing to deal with a hung parliament and the start of negotiations from Monday to form a government after a sudden rise of the left hindered Marine Le Pen’s efforts to bring the extreme right to power.
Markets are awaiting consumer price index data from the United States and Germany, which will provide an indication about the future path of interest rates.
Source: Reuters
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